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Clarity Manufacturing needs 600,000 units of shafts for its production of golf clubs per year. The carrying costs of these tires are $15 per unit
Clarity Manufacturing needs 600,000 units of shafts for its production of golf clubs per year. The carrying costs of these tires are $15 per unit per year and the fixed ordering cost is $900.
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- What is the optimal number of units Clarity Manufacturing should order each time in order to minimize total inventory cost? (4 points)
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- How often (approximately every how many days) should Clarity Manufacturing order the inventory of shafts? Assume a 365-day year. (4 point)
- What is the annual carrying/holding cost at this optimal order quantity? (2 points)
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