Globe Inc.is a distributor of DVDs.DVD Mart is a local retail outlet which sells blank and recorded DVDs.DVD Mart purchases DVDs from Globe at $29.00 per DVD;DVDs are shipped in packages of 70.Globe pays all incoming freight,and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality.Annual demand is 320,000 DVDs at a rate of 6500 DVDs per week.DVD Mart earns 13% on its cash investments.The purchase-order lead time is one week.The following cost data are available:
What is the economic order quantity?
A) 63.26 packages
B) 44.19 packages
C) 5) 81 packages
D) 62.49 packages
Correct Answer:
Verified
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