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1 5 - 2 2 : Media Moguls ( M&M ) normally sells 2 4 0 , 0 0 0 units per year. It costs
: Media Moguls M&M normally sells units per year. It costs M&M $ to purchase each unit, the fixed cost of ordering is $ and the carrying costs equal percent of the units purchase price.
: Refer to the information provided for M&M in
Problem Suppose M&M must place orders
in increments of units and it takes three
days for each order to be delivered. a How
many orders should M&M place each year? b At
what inventory level should an order be placed?
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