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A department store sells 10,000 cameras per year. The store orders cameras from a regional warehouse. Each time an order is placed, an ordering cost
A department store sells 10,000 cameras per year. The store orders cameras from a regional warehouse. Each time an order is placed, an ordering cost of $5 is incurred. The store pays $100 for each camera, and the cost of holding $1 worth of inventory for a year is estimated to be the annual capital opportunity cost of 20. Determine the EOQ. a) What is the EOQ? b) How many orders will be placed each year? c) How much time will elapse between the placement of orders? d) Determine the total annual cost incurred by the department store
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