Question: As inventory manager, you must decide on the order quantity for an item that has an annual demand of 1,900 units. Placing an order costs
As inventory manager, you must decide on the order quantity for an item that has an annual demand of 1,900 units. Placing an order costs you $25 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 30 percent. Your supplier has provided the following price schedule: What ordering policy do you recommend? The recommended ordering policy is units. (Enter your response as an integer.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
