Question: The Eiffel Tower in Paris opened a gift shop, the manger of the gift shop wants to manage the inventories of the gift shop because

The Eiffel Tower in Paris opened a gift shop, the manger of the gift shop wants to manage the inventories of the gift shop because he is having trouble managing it. His problem is with low inventory turnover is squeezing profit margins and causing cash flow problems.

One of the top-selling merchandise at the Eiffel Tower gift shop is a model of the Eiffel Tower. Sales are 20 units per week, and the supplier charges $40 per unit. The cost of placing an order with the supplier is $45. Annual holding costs are 20% of a feeders value, and the gift shop operates 52 weeks per year. Management chose a 390-unit lot size so that new orders can be placed less frequently.

What is the annual cost of the current policy using a 390-unit lot size?

Please Solve in excel, and send to pdxsneakerhead@gmail.com

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