CHAPTER $9$

An assistant manager is reviewing the costs associated with the store$$s best$-$selling product. The data available follows.

Weekly demand $=700$ units

Ordering cost $=$ $$80/$order

Holding cost $=$ $$14/$unit$/$year

$($a$)$ What would be the economic order quantity?

$($b$)$ What would be the average time in weeks between orders?

$($c$)$ What is the optimal number of orders per year?

$($d$)$ What is the total inventory cost?