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Belk procures curtains from its supplier for a cost of $41 per unit. The lead time to receive the order is 18 days and Belk
Belk procures curtains from its supplier for a cost of $41 per unit. The lead time to receive the order is 18 days and Belk incurs a fixed order cost of $912 each time it places an order regardless of the number of units ordered. Demand for the curtains at the distribution center (DC) is constant at 100 units per week. The holding cost per unit per year at the DC is 34% of the per unit purchase cost. Belk currently orders 870 units in each order. Assume Belk operates 7 days per week, 52 weeks per year, and 364 days per year. Calculate the annual inventory cost for the current order quantity
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