Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A wholesaler is deciding how to order one of their best selling items. They operate 310 days a year, and demand for the item is

image text in transcribed

A wholesaler is deciding how to order one of their best selling items. They operate 310 days a year, and demand for the item is fairly uniform and consistent throughout the year. The wholesaler expects to sell 80,000 of these items in the coming year, and must pay $8.00 each for the item, regardless of how many they order each time. The company figures their inventory holding cost on this item is $0.75 per unit per year. Their cost accountants estimate that every order placed costs $125 in administrative overhead. Lead time from the manufacturer is known to be 4 days. Given this information, use the correct inventory ordering model to determine the correct reorder point. (Round your answer to the nearest integer.) O a. 242

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fatal Numbers Why Count On Chance

Authors: Hans Magnus Enzensberger ,Karen Leeder

1st Edition

1935830015, 978-1935830016

More Books

Students also viewed these Finance questions