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Demand for a leather tote bag at Leatherology is constant at 4 , 0 0 5 units per year. Leatherology purchases the bags from its
Demand for a leather tote bag at Leatherology is constant at units per year. Leatherology purchases the bags from its supplier for a cost of $ per unit. The lead time to receive an order from the supplier is days. Leatherology incurs a fixed order cost of $ each time it places an order regardless of the number of units ordered. The holding cost per unit per year is of the per unit purchase cost. Leatherology currently orders units each time it places an order. Assume the firm operates days per week, weeks per year, and days per year.
Calculate the average cycle inventory for the current order quantity.
Carry your calculations to at least decimal places.
Enter your answer rounded to one decimal place nearest tenth
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