Question
The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual demand from its store customers is 17,400 chairs per year. The transport and handling
The Summer Outdoor Furniture Company produces wooden lawn chairs. The annual demand from its store customers is 17,400 chairs per year. The transport and handling costs are $2,600 each time a shipment of chairs is delivered to stores from its warehouse. The annual carrying cost is $3.75 per chair.
a. What is the optimal order quantity? Round answer to the nearest whole number and don't include any words in your answer.
b. What is the total ordering cost for the year? Round answer to the nearest whole number. Don't include the dollar symbol.
c. What is the total carrying cost for the year? Round to the nearest whole number. Don't include the dollar symbol.
d. What is the minimum total annual cost? Round the answer to the nearest whole number.
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