Question: Items purchased from a vendor cost $ 2 0 each, and the forecast for next half year's demand is 1 . 0 0 0 units.
Items purchased from a vendor cost $ each, and the forecast for next half year's demand is units. It costs $ every time an order is placed from more units, and the holding cost is $ per unit per year.
The company is open for business weeks per year. The lead time between when an order is sent for the vendor and when it is received week.
Answer the following questions with numbers only.
What quantity should be ordered each time?
What is the purchasing cost for a year?
What ts the carrying cost for a year?
What is the reorder point ROP quantity?
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