A store has collected the following information on one of its

Question

A store has collected the following information on one of its products:

Demand = 4,000 units/year

Ordering costs = $15/order

Holding costs = $2/unit/year

Lead-time = 5 days weeks

Number of weeks per year = 50 weeks

If a firm uses the continuous review system to control the inventory, what would be the order quantity?

Answer

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