Carrying cost per jersey per year consists of the required

Reference no: EM133659772

PART A. (1) SUPP Edge Ltd operates a store franchise featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Brisbane Lions AFL jerseys product line. This is a highly popular item. Data for 2024 are as follows: Expected annual demand for Lions jerseys D 9,500.00 Ordering cost per purchase order P $275.00 Carrying cost per year C per jersey $8.50 Each jersey costs CP $55.00 and sells for SP $120.00 The C carrying cost per jersey per year consists of the required return on investment of $8.50 ROI plus $3 in relevant insurance, handling and storage costs. $5.50 The purchasing lead time is LT days. Edge Ltd is open 365 days a year. 5.00

Reference no: EM133659772

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