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Breville makes an very popular induction cooktop (stove) for sale only on its web site. They buy the machines from a Mexican manufacturer and
Breville makes an very popular induction cooktop (stove) for sale only on its web site. They buy the machines from a Mexican manufacturer and realize almost steady demand all year long. The supplier has a two week lead time to get the cooktops from its plant to the US Breville warehouse. Weekly demand is 300 machines. The cost to place an order is $100 and the holding cost is estimated at 10% or retail price, or $150 per unit per year. The Mexican Peso trades at 6 cents on the US dollar. Assume 52 weeks in a year for any calculations. What is Brevilles economic order quantity? Make sure your answer makes sense. Blank 1
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