IT has been considering the prospect of stocking a new type of clothes.
IT has been considering the prospect of stocking a new type of clothes.
They have done some research on this item’s cost and demand characteristics and have determined the following.
Cost/unit: $15
Demand: 75 units/month
Cost to place order: $400/order
Inventory-holding cost: $8/unit-year
Selling price/unit: $20
Currently their ordering policy is to order 150 clothes every two months. (Not the EOQ policy)
1) How many times per year will IT order under this policy?
2) What is the annual holding cost?
3) What is the annual setup cost?
4) What is the annual profit?
Here is the consider adopting the EOQ policy
1) What is the EOQ?
2) How many times per year will IT order under an EOQ policy?
3)What is the annual holding cost?
4) What is the annual setup cost?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post IT has been considering the prospect of stocking a new type of clothes. appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.