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At what point should managers reorder the computers

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Question - IDM purchases one model of computer at a wholesale cost of $300 per unit and resells it to end consumers. The annual demand for the company's product is 600,000 units. Ordering costs are $1,200 per order and carrying costs are $75 per computer, including $30 in the opportunity cost of holding inventory. It currently takes 2 weeks to supply an order to the store. There are 52 weeks in a year.

Required - At what point should managers reorder the computers, assuming that both demand and purchase-order lead time are known with certainty?

Reference no: EM132535217

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