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A manager of an appliance manufacturing company located on the West Coast is promoting a line of household appliances in a market on the East

A manager of an appliance manufacturing company located on the West Coast is promoting a line of household appliances in a market on the East Coast. A warehouse located near the East Coast market will deliver to the customers. The company is now preparing to transport appliances (products) from the West Coast to the East Coast.


The forecasted annual demand for the product is 2500. The item cost is $1200. The order processing cost is $500/order. How many appliance units should it order in one shipment?

 


 





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