Question
You are in charge of the purchasing department of the Tecnolgico bookstore, the Best Sellers of the season is El Chicharito de las chivas al
You are in charge of the purchasing department of the Tecnolgico bookstore, the Best Sellers of the season is "El Chicharito de las chivas al ManU" unauthorized biography. Each one of the books generates a 30% profit margin for the bookstore, with a list price of 250. The Omnilife publishing house offers to supply any number of books within 5 days. The expected demand is 1500 books per month, the cost of placing orders is approximately 250, the annual inventory maintenance cost is 6 per unit (this cost is already prorated to the book in question.)
What is the economically optimal order size EOQ? What is the average inventory level? What is the total cost of inventory for the year?
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