Ergonomics inc. sells ergonomically designed office chairs. the company has the following information:
average demand = 20 units per day
average lead time = 30 days
item unit cost = $50 for orders of less than 200 units
item unit cost = $48 for orders of 200 units or more
ordering cost = $25
inventory carrying cost = 25%
the business year is 250days
required :
how many chairs should the firm order each time?
Answers: 1
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