Question
DirtCo sells and distributes quality dirt to dirt connoisseurs across the world. The monthly demand for your most popular variety, Cambridge Red, is very stable
DirtCo sells and distributes quality dirt to dirt connoisseurs across the world. The monthly demand for your most popular variety, Cambridge Red, is very stable at 12,000 pounds. You order this item from an outside vendor, Muck Inc. The cost of placing an order is $30 and the material costs you $10 per pound. The annual holding cost rate of is estimated at 15%
A. What is the order size for your orders of Cambridge Red? Round to the nearest integer value.
B. How many orders do you expect to place over a year?
C. What is the order cycle time. number of days between orders. assume 365 days in a year and write your final answer with two significant digits. For example if your answer is 1.597 write your final answer as 1.60
D. What is the annual total relevant cost for this inventory policy? Round to the nearest integer.
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