Question: Guitar Center ( GC ) purchases USB audio interface units from its supplier for a cost of $ 2 8 1 per unit. The lead
Guitar Center GC purchases USB audio interface units from its supplier for a cost of $ per unit. The lead time to receive an order from the supplier is days. Guitar Center incurs a fixed order cost of $ each time it places an order regardless of the number of units ordered. Demand for the audio interface units at the warehouse is constant at units per week. The holding cost per unit per year at the DC is of the per unit purchase cost. Guitar Center currently orders units in each order. Assume Guitar Center operates days per week, weeks per year, and days per year.
Calculate the optimal total annual relevant cost in dollars.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
