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Wisetech Ltd. produces computer product and has the following information available concerning its inventory items: Relevant ordering costs per purchase order $490 Relevant carrying costs
Wisetech Ltd. produces computer product and has the following information available concerning its inventory items: Relevant ordering costs per purchase order $490 Relevant carrying costs per year for each package: Required annual return on investment 15% Required other costs per year $8 Annual demand is 33,000 packages per year. The purchase price per package is $50. What is the number of orders that will be placed each year, assuming the quantity ordered equals 1500 packages? a. 22 orders b. 24 orders C. 20 orders d. 26 orders
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