The soft goods department of a large department store sells 175 units per month of a...

 

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The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of 1 = 27% per year. Determine the following: a. What is the optimal order quantity? [Select] b. What are the number of orders? [Select] c. What is the cost of managing the inventory [Select] d. If the department store is open 350 days per year, how many days are between orders? [Select] e. If the lead time from the supplier takes 10 days, what is the re-order point? [Select] The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of 1 = 27% per year. Determine the following: a. What is the optimal order quantity? [Select] b. What are the number of orders? [Select] c. What is the cost of managing the inventory [Select] d. If the department store is open 350 days per year, how many days are between orders? [Select] e. If the lead time from the supplier takes 10 days, what is the re-order point? [Select]