AberwaldAberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order, the purchase price per chip is $25, and the firm's inventory carrying costs is equal to 20% of the purchase price. (Assume a 360-day year.)
-Refer to Scenario: Aberwald.How many orders should Aberwald place during the year?
A)12
B)25
C)30
D)40

Question

Quizplus · Accepted Answer

The Answer of AberwaldAberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order, the purchase price per chip is $25, and the firm's inventory carrying costs is equal to 20% of the purchase price. (Assume a 360-day year.)
-Refer to Scenario: Aberwald.How many orders should Aberwald place during the year?
A)12
B)25
C)30
D)40

AberwaldAberwald Corporation Expects to Order 126,000 Memory Chips for Inventory