Question
3) SportsMart sells 500,000 baseballs annually. The baseballs cost SportsMart $24 per dozen ($2.00 each). Annual inventory carrying costs are 25% of inventory value and
3) SportsMart sells 500,000 baseballs annually. The baseballs cost SportsMart $24 per dozen ($2.00 each). Annual inventory carrying costs are 25% of inventory value and the cost of placing and receiving an order are $78. Determine the:
A) Economic Order Quantity
B) Total annual inventory costs of this policy
C) Optimal ordering frequency
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
