Question: * Please show all work and formula and units. The weekly demand for crabs at a restaurant is 100 units. The annual inventory carrying cost

* Please show all work and formula and units.
The weekly demand for crabs at a restaurant is 100 units. The annual inventory carrying cost
for the crab is $10 per unit. The ordering cost for one order of any size is $50 , and the time between
ordering and receipt is one week. At what inventory level should they place their orders? What is the
optimal order quantity, and how many times a year do they need to place an order?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!