The annual demand for silver dressings is 1,500 boxes. The holding cost per box per year is $120, and the cost of placing an order is estimated at $40. The purchase price per box is $450. Assume that demand is known and constant.

Part A: Determine the optimal order quantity of silver dressings.

Options:

47

25

32

38

Part B: Management would prefer to set the holding cost as a percentage of the purchase price. Thirty percent of the items price seems appropriate. Determine the new optimal order quantity and total costs.

Options:

19

53

30

45