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Demand for a popular coffee table at an IKEA warehouse is constant at a rate of 14,642 units per year. IKEA procures these units from
Demand for a popular coffee table at an IKEA warehouse is constant at a rate of 14,642 units per year. IKEA procures these units from its contract manufacturer at a purchase cost of $128 per unit. IKEA receives an order 28 days after it is placed. Regardless of the number of units ordered, IKEA incurs a fixed cost of $1,988 for placing, shipping, and receiving the order. The holding cost per unit per year is 21% of the purchase cost per unit. Assume IKEA operates 364 days, 52 weeks, or 12 months per year. Calculate the optimal order quantity. Carry your calculations to at least 3 decimal places. Enter your answer rounded to one decimal place (nearest tenth)
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