Question
Demand for a popular toner cartridge at Office Depot is steady at 430 units per month . Office Depot purchases the cartridges from a supplier
Demand for a popular toner cartridge at Office Depot is steady at 430 units per month. Office Depot purchases the cartridges from a supplier at a cost of $40 per unit. Annual holding cost is estimated at 33% of the per unit purchase cost. Office Depot incurs a fixed order cost of $1495, each time it places an order regardless of the number of units ordered. Assume 12 months and 52 weeks per year.
Compute the optimal total annual relevant cost associated with the optimal order quantity for toner cartridges for Office Depot.
Carry all calculations to at least 3 decimal places. Round your answer to the nearest tenth of a unit.
The correct answer is: 14270.8
What am I doing wrong? ;-;
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