Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets $10$ times a year. It is estimated that the ordering cost is $$400$ per order. The carrying cost is $$50$ per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $$120$ per unit per year. Based on forecast, the annual demand is $600$ units. State Wide Furnishings, Inc. has $350$ working days in a year and its lead time is $14$ working days.

Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual total relevant, including ordering, holding and shortage, cost.

$592\mathrm{.}82$

$1472\mathrm{.}01$

$2051\mathrm{.}28$

$4116\mathrm{.}11$

None of the above

Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets $10$ times a year. It is estimated that the ordering cost is $$400$ per order. The carrying cost is $$50$ per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $$120$ per unit per year. Based on forecast, the annual demand is $600$ units. State Wide Furnishings, Inc. has $350$ working days in a year and its lead time is $14$ working days.

Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the reorder point.

$10$

$-10$

$34$

$24$

None of the above