Question: The ABC Computer Store sells a printer for $ 6 0 0 . Demand for this is constant during the year, and daily demand is
The ABC Computer Store sells a printer for $ Demand for this is constant during the year, and daily demand is forecasted to be units. The cost of ordering is $ per order, while the holding cost is $ per unit per year. There are working days per year and the leadtime is days.
a Currently the company uses an ordering policy of units at a time. Determine the total sum of the annual ordering cost and the annual holding cost for the current ordering policy?
b Is the current policy of ordering units at a time optimal? Justify your answer.
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