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Imagine that a particular company has been purchasing a particular item in lots of 900 units. The company places an order for these number of
Imagine that a particular company has been purchasing a particular item in lots of 900 units. The company places an order for these number of units every 3 months of the year. The cost per unit is K12 and it costs the company K16 every time it makes an order. The carrying cost is K3 per unit. Would you recommend that this company continues to order 900 units of this item per order or they should start ordering at the most economical quantities? Justify your answer.
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