Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of
The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of 1 = 27% per year. Determine the following: a. What is the optimal order quantity? [Select] b. What are the number of orders? [Select] c. What is the cost of managing the inventory [Select] d. If the department store is open 350 days per year, how many days are between orders? [Select] e. If the lead time from the supplier takes 10 days, what is the re-order point? [Select]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started