A distribution center sells Sony televisions to retailers at a constant demand rate of 2 0 ,
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Question:
A distribution center sells Sony televisions to retailers at a constant demand rate of units per year. It costs the distribution center $ to place an order. Also, the price the distribution center pays the manufacturer for each unit is $ The inventory holding cost is $ per unit per year. The material cost is $ per unit. Assume that the lead time from the manufacturer to the distribution center is zero years, and that the initial inventory at the distribution center is zero units. Calculate the economic order quantity and the total annual cost?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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