Demand for one of its popular products at a constant rate

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Reference no: EM13749848

A store faces demand for one of its popular products at a constant rate of 3,300 units per year. It costs the store $65 to process an order to replenish stock and $15 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 10 working days after an order is placed. The store buys the product for $70 per unit and sells it for $140 per unit. At the moment the store uses an order quantity of 220 units. Assume EOQ model assumptions are satisfied and 300 days a year.

If there are two blank boxes in any question, then you must put one of the following words in the second box: units, dollars, days, year, orders per year, dollars per year, and units per order answer the following questions (you should not use any commas in your answer)

[1] To fulfill the demand, the store must place _____orders per year.

Reference no: EM13749848

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