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Mesa Solutions needs 300 units of aluminum panels each week for its sign-making business. The carrying/holding cost per unit per year is $20 and the
Mesa Solutions needs 300 units of aluminum panels each week for its sign-making business. The carrying/holding cost per unit per year is $20 and the fixed ordering cost is $900.
- What is the optimal quantity to order so that inventory cost is minimized?
- How often (approximately every how many days) should Mesa Solutions order the inventory of aluminum panels? Assume a 365-day year.
- What is the annual carrying/holding cost at this optimal order quantity?
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