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Demand for a popular dog crate at a PetCo warehouse is constant at 476 units PER WEEK. PetCo incurs a fixed order cost of $1697
Demand for a popular dog crate at a PetCo warehouse is constant at 476 units PER WEEK. PetCo incurs a fixed order cost of $1697 each time it places an order with its supplier regardless of the number of units ordered. PetCo purchases the crates from its supplier for a cost of $168 per unit. The holding cost per unit per year is 29% of the per unit purchase cost. The lead time to receive the order is 8 days. Assume PetCo operates 364 days, 52 weeks, and 12 months per year. Calculate the optimal total relevant cost associated with the optimal order quantity for dog crates for PetCo. a. $118799.8 O b. $26230.0 O c. $8871.8 O d. $43503.4 O e. $63975.6 Of $78690.0 0. $31987 8
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