Determine the total annual costs of meeting the customers

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Reference no: EM131726281

Customers at Joe’s Office Supply Store demand an average of 500 desks per month. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a desk. One week elapses between the placement of an order and the arrival of the order (i.e. the lead time is one week). In parts (a)–(d), assume that no shortages are allowed

Determine the total annual costs (holding cost + ordering cost) of meeting the customers’

demands for desks.

Reference no: EM131726281

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