Explain while purchasing what colour displays to be used

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Q. A high-tech manufacturing company in Hong Kong called HK is purchasing colour displays to be used in its digital video recorders. Displays are coming from north of China also it takes 3 weeks to receive any order from vendor. Weekly demand of displays is approximately normally distributed with mean of 38 also a variance of 130. Each display costs $18.80 also there is an ordering cost of $75 regardless of size of order. Company uses a stock-out cost of $400 per display also 40% of annual interest rate is used to compute holding costs. HK works 52 weeks in a year.

Reference no: EM1377231

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