Value-Fresh purchases a perishable product at $12 and sells it at $20. The forecasted demand for this product is as such: 7770 in January, 7790 in Feb, 7830 in Mar, 7780 in Apr, 7830 in May, 7760 in Jun, 7830 in Jul, 7810 in Aug, 7810 in Sep, 7900 in Oct, 7800 in Nov and 7800 in Dec. Calculate the optimal order quantity of perishable product for Value-Fresh to purchase considering the potential profit and loss associated with too high or too low inventory. Round up the calculated quantity to the next integer.

Answer rating: 100% (QA)

To calculate the optimal order quantity for the perishable product we can use the Economic Order Qua... View the full answer