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 10,500 blivets per month is trying to determine how many blivets to keep in inventory. The nancial manager has determined that it costs $300 to place an order. The value of the blivet is $12.00 and the cost of holding inventory is 20% of the value per year based on average blivet in inventory. A ve-day 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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