Firm average inventory be under each alternative

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Reference no: EM131775715

Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: average demand= 20 units per day average lead time= 30 days Item unit cost= $40 for orders of less than 200 units Item unit cost= $48 for orders of 200 units or more Ordering cost= $25 Inventory carrying cost= 25% The business year is 250 days How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time/ There are many associated questions, such as what will the firm's average inventory be under each alternative? What will be the breakdown of costs for each alternative?

Reference no: EM131775715

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