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The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the
The University Gift Shop purchases sweatshirts emblazoned with the school's name and logo from a vendor in Toronto. The vendor sells the sweatshirts to the Gift Shop for $ a piece. Shipping from Toronto to London costs $ per order. When an order arrives, it has been estimated that receiving and inspection tasks cost the Gift Shop $ The annual holding cost for a sweatshirt is calculated as of the purchase cost. The Gift Shop manager estimates that sweatshirts will be sold during the upcoming academic year. Assume that there are business days a year. If the economic order quantity is what is the annual average inventory level?
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