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Compute the economic order quantity for Aldo

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Reference no: EM132707857

Question - Aldo Retail Company Ltd experiences relatively constant demand of1200 units per month for one of its products. The product, a coffee-making machine, costs the firm $50. Placing an order costs $300 and annual carrying costs are $3 per unit. The firm works 200 days per year and desires a safety stock of 400 units. The lead time for an order is 15 working days. Compute the economic order quantity for Aldo?

a. 1549.

b. 1200.

c. 6432

d. None of the above

Reference no: EM132707857

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