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An electronics retailer sells laptops at a steady rate of 7,500 per quarter. It costs the manufacturer $350 to make each laptop, and they charge
An electronics retailer sells laptops at a steady rate of 7,500 per quarter. It costs the manufacturer $350 to
make each laptop, and they charge $400/laptop to the retailer. The manufacturer produces the laptop at a
steady rate that matches demand, and incurs a fixed cost of $2,800 to fulfill each retail order. Both the
retailer and the manufacturer have an annual holding cost percentage of 20%. The retailer places 10 orders with the laptop manufacturer each quarter (which it determined from an EOQ calculation).
make each laptop, and they charge $400/laptop to the retailer. The manufacturer produces the laptop at a
steady rate that matches demand, and incurs a fixed cost of $2,800 to fulfill each retail order. Both the
retailer and the manufacturer have an annual holding cost percentage of 20%. The retailer places 10 orders with the laptop manufacturer each quarter (which it determined from an EOQ calculation).
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Retailers Costs Ordering cost The retailer places 10 orders per quarter so the annual ordering cost is 10 ordersquarter 4 quartersyear 40000 per year ...Get Instant Access to Expert-Tailored Solutions
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