Novelty Gifts,Inc.is experiencing some inventory control problems.The manager,Wanda LaRue,currently orders 5,000 units four times each year to handle annual demand of 20,000 units.Each order costs $15 and each unit costs $1.50 to carry.Ms.LaRue maintains a safety stock of 200 units.

Question

Quizplus · Accepted Answer

The Answer of Novelty Gifts,Inc.is experiencing some inventory control problems.The manager,Wanda LaRue,currently orders 5,000 units four times each year to handle annual demand of 20,000 units.Each order costs $15 and each unit costs $1.50 to carry.Ms.LaRue maintains a safety stock of 200 units.