Question: Q Tech is an electronics company that sells screen guards for iPhones. They sell 175 ScreenGuards per month. The unit cost of a ScreenGuard is
Q Tech is an electronics company that sells screen guards for iPhones. They sell 175 ScreenGuards per month. The unit cost of a ScreenGuard is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of I = 27% per year. With this information...
Determine:
a. the optimal order quantity b. the order frequency c. the annual holding and ordering cost If, through automation of the purchasing process, the ordering cost can be cut to $4.00, what will be: d. the new economic order quantity e. the order frequency f) the annual holding and ordering costs?
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