Question: Demand for Operations Management textbook ( by Dr . Stevenson, sold at Amazon ) is 1 2 , 0 0 0 units per year. Amazon

Demand for Operations Management textbook (by Dr. Stevenson, sold at Amazon) is 12,000 units per year. Amazon incurs a fixed ordering cost of $400 each time an order is placed from the publisher. Each textbook cost Amazon $50 and it is estimated that Amazon has an annual holding cost of 20% for each book it holds. Compute the number of textbooks an Amazon warehouse manager should order in each replenishment lot.

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