Basketball Inc., operates a megastore featuring sports merchandise. It uses EOQ decision model to make inventory decisions

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Basketball Inc., operates a megastore featuring sports merchandise. It uses EOQ decision model to make inventory decisions for its PBA's jersey product line. This is a highly popular item. Data for 2014 are:

Expected annual demand for PBA 10,000

Ordering cost for purchase order P225

Carrying cost per year P10 per jersey

Each jersey costs Basketball Inc. P40 (12% x P40 purchase price plus P5.20 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. Basketball Inc. is open 365 a year.

What is the number of orders that will be placed each year?

Posted Date: May 18, 2024 03:04 AM

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Basketball Inc., operates a megastore featuring sports merchandise. It uses EOQ decision model to make inventory decisions

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