How many boxes of cereals should target order

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Demand for breakfast cereals at Target is 20,000 boxes per month. The holding cost is 60 cents per box per year. For each order placed, the retailer incurs an ordering cost of $40. The cost of each box of cereal is $3 and sold to consumers at a retail price of $5. If Crunchy orders in quantities of 30,000 boxes or more, the retailer can get a 1% discount on the cost of the breakfast cereals. How many boxes of cereals should Target order per replenishment?

Reference no: EM132701828

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