A company has predicted annual sales of 2500 units,an ordering cost of $35,and a carrying cost of $1.75 per unit.How many orders should they make this year?
A) 71.43
B) 12.65
C) 7.91
D) 23.46
E) 15.64

Question

Quizplus · Accepted Answer

Step 1 - Compute the optimal number of units per order.
Q* = 11ea7fdb_fc3f_65c8_a768_65ab2e816429_TB2902_11 Q* = 11ea7fdb_fc3f_8cd9_a768_094ce1a92fb2_TB2902_11 Q* = 316.23
Step 2 - Use the optimal number of units per order to compute how often they should order. 11ea7fdb_fc3f_8cda_a768_6169901bd571_TB2902_11 = 11ea7fdb_fc3f_8cdb_a768_cdbcb6afeea9_TB2902_11 = 7.91

A Company Has Predicted Annual Sales of 2500 Units,an Ordering