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?

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!