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Mama Star Enterprises is a distributor or air filters to retail shops. It buys its filters from several manufacturers. Filters are ordered in lot sizes
Mama Star Enterprises is a distributor or air filters to retail shops. It buys its filters from several manufacturers. Filters are ordered in lot sizes of 100 and each order costs Sh.400 to place. Demand from retail shops is 200,000 filters per month and the carrying cost is Sh.10 per filter per month. Required a) What is the optimal order quantity with respect to so many lot sizes b) If a safety stock of 2,000 filters is
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