The university bookstore is ordering textbooks in preparation for the upcoming semester. This is an online class, and student demand for the book is
The university bookstore is ordering textbooks in preparation for the upcoming semester. This is an online class, and student demand for the book is consistent throughout the semester. There will be 700 students taking the class, half (350) of which will order from the bookstore. It costs the bookstore 12% per semester of the book's $120 cost for the book to be held in inventory. Placing an order costs $23.00 based on the time it takes an employee to complete and send the order form. a. How many books should the bookstore order at a time? 33.44 b. What is the annual HOLDING cost? $481.50 c. What is the annual ORDERING cost? $481.50 Based on shelf space, the bookstore is limited to having a maximum inventory of this book of 30 copies. d. Based on the shelf space limitation, what is the impact on HOLDING costs compared to the optimal plan (to the nearest dollar)? Holding costs are now about!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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