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.If Aberwald holds a safety stock equal to a 30-day supply of chips,what is Aberwald's minimum cost of ordering and carrying inventory?
A)$15,950
B)$28,500
C)$34,220
D)$68,440

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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.If Aberwald holds a safety stock equal to a 30-day supply of chips,what is Aberwald's minimum cost of ordering and carrying inventory?
A)$15,950
B)$28,500
C)$34,220
D)$68,440

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