Question: This is the first problem and includes the next four questions. Breville makes an very popular induction cooktop ( stove ) for sale only on
This is the first problem and includes the next four questions.
Breville makes an very popular induction cooktop stove for sale only on its web site. They buy the machines from a Mexican manufacturer and realize almost steady demand all year long. The supplier has a two week lead time to get the cooktops from its plant to the US Breville warehouse. Weekly demand is machines. The cost to place an order is $ and the holding cost is estimated at or retail price, or $ per unit per year. The Mexican Peso trades at cents on the US dollar.
Assume weeks in a year for any calculations.
What is Brevilles economic order quantity? Make sure your answer makes sense.
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