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Q: Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a large sports marketing company chain with a central inventory operation. Their

Q: Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a large sports marketing company chain with a central inventory operation. Their fastest-moving inventory item has a daily demand of 35 units. The cost of each unit is 200, and the inventory carrying cost is 25 per unit per year. The average ordering cost is 60 per order. It takes about 5 days for an order to arrive, and there are 252 working days per year.
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QA. To minimize the cost, how many units should be ordered each time an order is placed? What is the total annual inventory cost, including the cost of the units?

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