Joe's Scuba Diving shop has a favorite model that has annual sales of 87. The cost to place an order to replenish inventory is $29 per order, and annual inventory costs are $14.
a. What is the optimal order size?
b. What is the maximum inventory level?
c. What is the average inventory?
d. What is the annual inventory cost?
e. What are the number of orders per year?
Correct Answer:
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