Business
Business, 21.04.2020 16:21, naiquawhite

A wholesale store buys 500 of its most popular coffee mugs each month. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60. The supplier lead time is 2 operating days. The store operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts.
What quantity should the store order with each order?
How many times per year will the store order?
How many days will elapse between two consecutive orders?
What is the reorder point if the company wishes to carry a safety stock of 10 mugs?
What is the store’s total annual cost of placing orders & carrying inventory?

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A wholesale store buys 500 of its most popular coffee mugs each month. The cost of ordering and rece...

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