Question: A computer store's estimated quarterly demand for a certain mouse is 125 units. The cost of this item to the retailer is $10.00 per mouse.
A computer store's estimated quarterly demand for a certain mouse is 125 units. The cost of this item to the retailer is $10.00 per mouse. Supplier's warehouse is located in the east, but delivery is known for certain to be five days. The cost of placing an order is $20.00. The carrying cost to hold one mouse for a month is 1% of the cost of the mouse. Keep 2 digits after decimal point in calculation
1.
What is the value of H? Pick the best answer.
| A. | $12.00 | |
| B. | $1.00 | |
| C. | $0.10 | |
| D. | $1.20 | |
| E. | $1.80
|
2.
What is the economic order quantity for this mouse? Pick the best answer.
| A. | 143 units | |
| B. | 119 units | |
| C. | 168 units | |
| D. | 105 units | |
| E. | 129 units |
3.
What is the annual total cost (TC) for this inventory policy? Pick the best answer.
| A. | $5,154.92 | |
| B. | $5,483.12 | |
| C. | $5,727.84 | |
| D. | $4,992.66 | |
| E. | $4,821.17 |
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