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A North Face retail store in Chicago sells 5 0 0 jackets eac month. Each jacket costs the store $ 1 0 0 and the

A North Face retail store in Chicago sells 500 jackets eac month. Each jacket costs the store $100 and the company ha an annual holding cost of 25 percent. The fixed cost of replenishment order (including transportation) is $100. Th store currently places a replenishment order every month fo 500 jackets. What is the annual holding and ordering cost On average, how long does a jacket spend in inventory? If th retail store wants to minimize ordering and holding cos what order size do you recommend? How much would th optimal order reduce holding and ordering cost relative to th current policy?
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