A Store Has Collected the Following Information on One of Its

question 36

Essay

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?

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Definitions:

Opted In

A situation where individuals have affirmatively agreed to participate or receive communications, typically in a marketing context.

Social Media Platform

Online platforms that enable users to create and share content or participate in social networking.

Unique Visitors

Individuals who visit a website within a given time frame, where each visitor is counted only once regardless of the number of visits made.

Opted In

A decision made by individuals to voluntarily subscribe to a service, typically an email list or marketing communication, after being fully informed.