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? (2.
Question 3.3(12 marks) The manager of a large electronics store wants to begin stocking a universal TV remote control device. Expected annual demand is 6000 units and the remote controls will be purchased from a supplier with the following price list:
Ordering cost is \(\$ 40\) per order and annual holding cost is \(25\%\) of unit price. Determine:
a) What order quantity is optimal if the intent is to minimize total annual cost? (6 marks)
b) What would be the average inventory level if this optimal order quantity is used? (3 marks)
c) What would be the number of orders placed each year based on the optimal order quantity? (3 mar)
c . What would the average inventory level be for

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!