15-17

Media Moguls (M&M) normally sells 240,000 units per year. It costs M&M $52 to purchase each unit, the fixed cost of ordering is $260, and the carrying costs equal 15 pecent of the units purchase price. (a) What is the EOQ? (B) How many orders should M&M place each year?

15-18

Refer to the information provided for M&M un problem 15-17. suppose that M&M must place orders in increments of 5,000 units and that 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?