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Willy and Tom Limited uses 60000 batteries each year in its production of motorcycles at a cost of $450 per battery.The cost of placing an
Willy and Tom Limited uses 60000 batteries each year in its production of motorcycles at a cost of $450 per battery.The cost of placing an order is $75.The cost of holding one unit of inventory for one year is 0.05% of the unit purchase price.Currently,Willy and Tom limited places 12 orders of 5000 batteries per year.Compute (A)the cost Willy and Tom current inventory policy.(B)is this the minimum cost? Explain
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