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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
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 con 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 50.75 per unit per year. Their cost accountants estimate that ever 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 best quantity to order each time. (Round your answer to the nearest integer.) a. 2,598 b. 5.164 3.162 3.749 2,828 2.366
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