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Ergonomics Incorporated sells ergonomically designed office chairs. The company has the following information: Average demand =33 units per day Average lead time =47 days Item
Ergonomics Incorporated sells ergonomically designed office chairs. The company has the following information: Average demand =33 units per day Average lead time =47 days Item unit cost =$67 for orders of less than 370 units Item unit cost =$66 for orders of 370 units or more Ordering cost =$42 Inventory carrying cost =20% The business year is 250 days. a. How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead tim b. What will the firm's average inventory be under each alternative? c. What will be the annual ordering and holding costs for each alternative? Complete this question by entering your answers in the tabs below. How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. Note: Round up your answer to the next whole number
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