A company has three items in its inventory that are purchased from the same vendor and are

Question:

A company has three items in its inventory that are purchased from the same vendor and are shipped together on the same delivery truck. The truck has a capacity of 30,000 lb. The items are under the periodic review method of inventory control and are purchased with a single purchase order that costs $60 to prepare. The annual carrying cost is 25 percent of each item's value. Other information about the items is as follows:
A company has three items in its inventory that are

Due to economic considerations, the shipment size is not to exceed the truck capacity for the combined order. What size should the order quantity be for each item?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: