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vThe Hyundai Sonata has been sold at a rate of 100 cars per month over the past year. Hyundai has released a new version, and
vThe Hyundai Sonata has been sold at a rate of 100 cars per month over the past year. Hyundai has released a new version, and they expect it to be sold at the same rate. The new Sonata costs $20,000. A dealer needs to determine how many new Sonatas they should purchase regularly to balance between "order-processing costs" and "inventory-holding costs." You can use the information below: - Fixed order cost: $2000 per order - Monthly holding cost: 0.5% of the variable unit cost a) (5 pts) How many Sonatas should the dealer order to minimize the inventory cost? b) (5 pts) If the dealer orders the quantity in a), how many times per year does the dealer order the quantity? c) (5 pts) If it takes 2.5 months for an order to arrive at the dealership, what is the reorder point? Assume the dealer orders the quantity obtained in part (a)
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