Question: ( 0 4 - 0 5 ) LEE just opens the gift store in Glassboro. He purchases cards from Hall Marks for (

(04-05) LEE just opens the gift store in Glassboro. He purchases cards from Hall Marks for \(\$ 10\) each box. Lee's gift store expects to sell 10 boxes of card a week. Lee's store estimates it cost them \(\$ 5.00\) to place an order, and holding cost is about \(20\%\) purchase cost per box. It usually takes 5 days to get each order because of its high dem 04. What is the economic order quantity (i.e., EOQ) of inventory (Find nearest value)?05. What is the annual total cost inventory cost per year (i.e, total ordering cost + total carrying cost)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!