Question: ou work at an electronics retailer and you re evaluating the inventory management of your monitors. On average, the electronics store sells about 3 5
ou work at an electronics retailer and youre evaluating the inventory management of your monitors. On average, the electronics store sells about monitors each month. Each time you place an order for this monitor, you incur an order cost of $ and the order typically takes days for an order to arrive.
The annual inventory carrying cost of the monitors is of the per unit purchase cost. Your store is open for months out of the year.
Your supplier has provided two options for how it could sell you this type of monitor:
Option A: if you order fewer than monitors when you place an order, each monitor costs $
Option B: if you order or more monitors when you place an order, each monitor costs $
Assume no variability in demand or lead time.
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