At a local convenience store, an SKU has an annual demand of 20,000 units, each costing...

 

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At a local convenience store, an SKU has an annual demand of 20,000 units, each costing $15, ordering costs are $90 per order, and the cost of carrying inventory is 23%. The optimal order quantity, as measured in $ is $5000 $7500 $1022 $1500 $15,330 At a local convenience store, an SKU has an annual demand of 20,000 units, each costing $15, ordering costs are $90 per order, and the cost of carrying inventory is 23%. The optimal order quantity, as measured in $ is $5000 $7500 $1022 $1500 $15,330

Answer rating: 100% (QA)

To find the optimal order quantity you can use the Economic Order Quantity EO... View the full answer