Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mark Achins sells 3,600 electronic motors each year. The cost of these is $200 each, and demand is consistent throughout the year. The cost of

Mark Achins sells 3,600 electronic motors each year. The cost of these is $200 each, and demand is consistent throughout the year. The cost of placing an order is $40. While the holding cost is $20 per unit per year. There are 360 working days per year, and the lead time is 5 days. If Mark orders 400 units each time he placed an order, what would his average inventory be (in units)?
A. 100
B. 120
C. 200
D. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ziglar On Selling The Ultimate Handbook For The Complete Sales Professional

Authors: Zig Ziglar

1st Edition

0785288937, 978-0785288930

More Books

Students also viewed these Finance questions