Minty Air fresheners Ltd. maintains an inventory of bottles with chemical disinfectants to meet its annual demand

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Minty Air fresheners Ltd. maintains an inventory of bottles with chemical disinfectants to meet its annual demand for 81,600 bottles to service restrooms. Each package costs $4.75, and the order cost is $106.25 per order. Carrying costs have been identified as $1.50 per package. Minty Air fresheners bases its orders on the economic ordering quantity. Recently, the wholesaler of the bottles, in an attempt to shift the inventory burden to Minty Airfresheners , has offered a 10 percent discount if orders are placed quarterly. Should the present ordering policy of Minty Air fresheners be changed?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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