Question: Culver Dining sells high-end stemware. During a year, Culver Dining sells 1,392 cases of stemware with average sales of 5 cases per day. The
Culver Dining sells high-end stemware. During a year, Culver Dining sells 1,392 cases of stemware with average sales of 5 cases per day. The cases of stemware cost $245 each. Because the stemware is fragile and requires special handling, the carrying costs are $48 per case. The ordering costs are $14.50 per order. Currently, Culver Dining is placing orders every week (5 days lead time) for 25 cases. Although this usually met demand, Culver Dining has faced stock-outs and has had to disappoint customers. In reviewing historical sales records, managers learn that the maximum sales quantity is 6 cases per day. (a) Calculate the total ordering cost and carrying cost for the current order size. (Round answers to 2 decimal places, e.g. 125.74) Ordering cost $ Carrying cost $ Total Cost $
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