Question
KU School of Business estimates that the school building will require 50 cans of disinfecting wipes per week for the foreseeable future. To ensure safety
KU School of Business estimates that the school building will require 50 cans of disinfecting wipes per week for the foreseeable future. To ensure safety of the student and staff, they have instituted a strict policy of never running out of wipes. The school buys each can at a retail price of $10, besides which, the supplier charges a fixed fee of $50 per order irrespective of the order size. Since disinfecting wipes dry out very fast, the school estimates a holding cost of 0.20% of the retail price per can per week.
Suppose the supplier has a leadtime of two weeks. How many cans of disinfecting wipes should the school have in hand when they place a new order to the supplier? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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