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Check Out My Trunk Stereo Goods (a division of Deals on Wheels Company), is a distributor of DVDs and electronic stereo components. The Sudbury Video
Check Out My Trunk Stereo Goods (a division of Deals on Wheels Company), is a distributor of DVDs and electronic stereo components. The Sudbury Video Outlet is a local retail outlet that sells prerecorded DVDs to consumers. Sudbury purchases these DVDs from Trunk at $5.00 per DVD Sudbury expects demand for these types of DVDs to be 200,000 for the year. The cost for Sudbury to place an order (pick up the phone and arrange to meet the Head Dealer and then pay him his "commission") is $100. The carrying cost per DVD is estimated to be $3.00. REQUIRED: Calculate the following items for the company. (1) The economic order quantity. Round your answer up to the next whole unit. (2) The number of orders that the company will have to place per year. (3) The total ordering cost. "The total carrying cost. (5) The total inventory costs
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