Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started