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Wildhorse Dining sells high-end stemware. During a year, Wildhorse Dining sells 1,700 cases of stemware with average sales of 4 cases per day. The
Wildhorse Dining sells high-end stemware. During a year, Wildhorse Dining sells 1,700 cases of stemware with average sales of 4 cases per day. The cases of stemware cost $245 each. Because the stemware is fragile and requires special handling, the carrying costs are $50 per case. The ordering costs are $17.00 per order. Currently, Wildhorse Dining is placing orders every week (5 days lead time) for 20 cases. Although this usually met demand, Wildhorse Dining has faced stock-outs and has had to disappoint customers. In reviewing historical sales records, managers learn that the maximum sales quantity is 7 cases per day. (a) Your answer is incorrect. Calculate the total ordering cost and carrying cost for the current order size. (Round answers to 2 decimal places, e.g. 125.74.) Ordering cost Carrying cost Total Cost $ LA $ LA
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