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Company T is a wholesaler of customised T-shirts sold to customers located in Ukraine. The annual sales volume is 26,000 T-shirts per year. The level
Company T is a wholesaler of customised T-shirts sold to customers located in Ukraine.
The annual sales volume is 26,000 T-shirts per year. The level of storage costs is 25% of the inventory value. The purchase price of a unit of inventory is UAH 4.92. Fixed costs of fulfilling one order are UAH 1000.
You need to answer the questions:
What is the optimal order size?
How many orders should I place per year?
What is the average inventory size?
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