Case Study #3 Calculating Stock for TVs at ABC Electronics The planner at ABC Electronics is trying to calculate the optimal order quantity for the 50- inch plasma TV it stocks. The following data has been determined: Weekly sales have been averaging 125 TVs a week, the ordering costs including freight come to US$2,500, the unit cost is US$435, and the cost of carrying inventory at ABC Electronics is 15%. How would the planner determine the following answers? 1. What is the optimal order quantity the planner should use to buy the 50-inch TVs? 2. What would be the cycle inventory created by this order quantity? 3. How many orders would be placed per year? 4. What would be the total cost of an order