1. XYZ is a showroom for motorcycles that faces normally distributed demand with a mean of 100 and a standard deviation of 20 every week. Each motorcycle costs Rupees. 20000, and the company has an annual opportunity cost of capital of 12 percent. Motorcycles are sold at 21000. The store places its orders every week, which are supplied at the beginning of the week.
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3. What is the inventory of motorcycles the firm should hold on to at the beginning of the week? (Assume 50 weeks in a year)

Answer rating: 100% (QA)

To determine the optimal inventory level using the Economic Order Quantity EOQ model well need to ca... View the full answer