Question: Question 1 ) ( 2 5 pt . ) A retall store sells 1 2 0 0 0 units of a product to its customers
Question pt
A retall store sells units of a product to its customers each year. They buy each unit from the supplier for and wait about days after placing the order for dellvery from the supplier. The setup cost for ordering this product is $ per order, and the holding cost per unit per year is of the unit purchasing cost. Assume working days per vear. In order to minimize the total cost holding cost plus setup cost:
A What is the optimal order quantity?
B How many orders should the store place per vear?
c What is the reorder point?
D What is the total annual cost holding cost ordering cost
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