Question: A supply chain manager is trying to reduce her inventory costs by coming up with better ordering policies. The retail shop sells gaming consoles. One

A supply chain manager is trying to reduce her inventory costs by coming up with better ordering policies. The retail shop sells gaming consoles. One of the consoles has a steady demand and it is fairly steady.

The data is: Demand

= 1400

per year; Cost per unit

=

400

; holding cost

= 10 %

of the unit cost

/

per year; Ordering cost

=

600

per order

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