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ABC company is attempting to minimize total inventory cost. The cost of each unit is $2.25. The cost of capital is 15% and the physical
ABC company is attempting to minimize total inventory cost. The cost of each unit is $2.25. The cost of capital is 15% and the physical cost of maintaining this inventory is currently running at 7%. The purchasing officer can place an order in 25 minutes with materials and overhead cost of $7.50 per order. The purchase officer is currently paid $18.00 per hour. Records show, average weekly sales to be 12,000 units. How often should ABC place each order?
A. 6050
B. 6150
C. 6350
D. 6250
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