Sarah D sells 10,400 CDs every year. DigiSound wholesales them to her for S3.50 each for orders in excess of 250 CDs and S4.00 for smaller orders. There is a S10.00 processing and delivery charge for each shipment, regardless of its size. Sarah D finances her orders on her MasterCard with an annual interest rate of 20%. New York State has a real property tax of 5% on annual inventory value. Sarah D currently buys 200 CDs every week.

Evaluate Sarah D's current inventory management. Give her a better inventory management plan if there is a better one.

Answer rating: 100% (QA)

Option one Buying batch of 200 Costs cost per unit amount buying cost 200 4 ... View the full answer