Blair H. Dodds, III, runs a medium-to-large-sized home eBay business dealing in vintage photographs. The annual demand

Question:

Blair H. Dodds, III, runs a medium-to-large-sized home eBay business dealing in vintage photographs. The annual demand for his photos is approximately 50,000. The annual overhead cost (excluding the purchase price) to buy the photographs is $ 4,000 per year. Given that this cost represents the optimal annual ordering cost and the optimal ordering quantity is 400 photographs at a time determine the ordering cost and the average inventory level.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Quantitative Analysis for Management

ISBN: 978-0133507331

12th edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

Question Posted: