Question: A rm that sells 1 0 , 5 0 0 blivets per month is trying to determine how many blivets to keep in inventory. The
A rm that sells blivets per month is trying to determine how many blivets to keep in inventory. The nancial manager has determined that it costs $ to place an order. The value of the blivet is $ and the cost of holding inventory is of the value per year based on average blivet in inventory. A veday lead time is required for delivery of goods ordered. This lead time is known with certainty.
What is the economic ordering quantity?
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