Determine the estimated annual inventory holding cost

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Reference no: EM13105286

Tele Reco is the new specialty store that sells tvs sets video recorders video games and other tv products. A new Jap manufactured videotape recorder costs tele reco $600 per unit. Tele Reco annual holding cost is 22% order costs are estimated to be $70 per unit.
A. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder?
B. What are the estimated annual inventory holding and ordering costs associated with the product?
C. How many orders will be placed per year?
D. With 250 working days per year, what is the cycle time for the product?

Reference no: EM13105286

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