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The manager of an auto parts store is reviewing the inventory policy for one of their fastest selling products - car batteries. The store sells
The manager of an auto parts store is reviewing the inventory policy for one of their fastest selling products - car batteries. The store sells an average of 40 car batteries every week. The cost to hold one battery in inventory for a year is $15. The ordering cost per order is estimated at $50. The store operates all 52 weeks in a year. Use the information in Scenario 9.5. If the manager orders such that their annual holding cost is twice their annual ordering cost, how many units should they be ordering at one time as per the EOQ?
greater than 75 but less than or equal to 100 units | ||
less than or equal to 75 units | ||
greater than 100 but less than or equal to 125 units | ||
greater than 125 units |
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