Question: Piddling Manufacturing assembles security systems. It purchases 3,600 high-definition security cameras a year at $180 each. Ordering costs are $50, and annual carrying costs are

Piddling Manufacturing assembles security

Piddling Manufacturing assembles security systems. It purchases 3,600 high-definition security cameras a year at $180 each. Ordering costs are $50, and annual carrying costs are 20 percent of the purchase price. Compute the optimal quantity and the total annual cost of ordering and carrying the inventory. = = D = 3,600 security cameras per year S - $50 H .20($180) $36 2DS 2(3,600)(50) lo 100 security cameras H 36 TC = Carrying costs + Ordering costs = (Qo/2)H + (DIQOS (100/2)36 + (3,600/100)50 $1,800 + $1,800 = $3,600

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