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You are a large retailer that sells PCs. You expect to buy 22,500 within the next year. You will sell them at a steady rate
You are a large retailer that sells PCs. You expect to buy 22,500 within the next year. You will sell them at a steady rate during the year, and when you order them from your supplier they arrive exactly when expected. The PCs cost $500 from the supplier. The carrying cost as a fraction of the purchase price per year is 18%. Each time you place an order you are charged $180. How many PCs should you order each time you place an order? 300 How many orders will you place per year? 75
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