Miniature Company sells stuffed tigers. Birtal Inc. manufactures many different stuffed animals. Miniature orders 21,200 tigers per year, 22 per week, at $10 per tiger. The manufacturer covers all shipping costs. Miniature earns 20% on its cash investments. The purchase-order lead time is 2 weeks. Miniature sells 320 tigers per week. The following data are available (based on management's estimates) :
What is the economic order quantity using the estimated amounts?
A) 698.3 stuffed tigers
B) 329.2 stuffed tigers
C) 232.8 stuffed tigers
D) 493.8 stuffed tigers
Correct Answer:
Verified
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