Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,700 lenses per year, 260 per week, at $38 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 4.0 weeks. Vision sells 315 lenses per week. The following data are available:
What is the economic order quantity for Vision?
Definitions:
Undercapitalization
The lack of funds to operate a business normally.
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