HW#$2-$ Ch$.9$ & App. $9$ A $($i

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Francq Company is a regional distributor of automobile window glass. With the growing level of consumer demand for fuel$-$efficient subcompact cars, management recognizes a need to determine the total inventory cost associated with maintaining an optimal supply of replacement windshields that will fit these vehicles. Francq is expecting a daily demand for $100$ windshields. The purchase price of each windshield is $$200.$

$10$ Other costs associated with ordering and maintaining an inventory of these windshields are as follows:

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a$.$ The historical ordering costs incurred in the Purchase Order Department for placing and processing orders are shown below:

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References

$\backslash$table$[[,$Orders Placed and,$],[$Year$,$Processed,Total Ordering Costs$],[1,56,$$$34,440$