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Cogswell's Cogs is Spacely's Sprockets main competitor. Cogswell offers to sell you a similar product (a cog) under the following terms: the cost is $2,275
Cogswell's Cogs is Spacely's Sprockets main competitor. Cogswell offers to sell you a similar product (a cog) under the following terms: the cost is $2,275 per box of cogs. There are 50 cogs in a box. The cost of an order is $120. As well, Cogsley delivers the products to you gradually, at the rate of 3 boxes per day. Demand is as before: 20,000 cogs per year, with an annual holding cost of 20% of the value of the item. The company is open for business 250 days out of each year. What is the optimal order quantity of boxes of cogs? What is the total annual cost that results if you use this order quantity
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