Question: c . What would the average inventory level be for this EPQ? ( 2 . Question 3 . 3 ( 1 2 marks ) The
c What would the average inventory level be for this EPQ?
Question marks The manager of a large electronics store wants to begin stocking a universal TV remote control device. Expected annual demand is units and the remote controls will be purchased from a supplier with the following price list:
Ordering cost is $ per order and annual holding cost is of unit price. Determine:
a What order quantity is optimal if the intent is to minimize total annual cost? marks
b What would be the average inventory level if this optimal order quantity is used? marks
c What would be the number of orders placed each year based on the optimal order quantity? mar
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