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Minty Air Fresheners Ltd. maintains an inventory of packaged bottles with chemical disinfectants to meet its annual demand for 81,600 packages to service restrooms. Each
Minty Air Fresheners Ltd. maintains an inventory of packaged bottles with chemical disinfectants to meet its annual demand for 81,600 packages to service restrooms. Each package costs $4.75, and the order cost is $106.25 per order. Carrying costs have been identified as $1.50 per package. Minty Air Fresheners bases its orders on the economic ordering quantity. Recently, the wholesaler of the packages, in an attempt to shift the inventory burden to Minty Air Fresheners, has offered a 10 percent discount if orders are placed quarterly. Should the present ordering policy of Minty Air Fresheners be changed
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