Reference no: EM132620432

Miami Tanners purchases 4,160 bulbs per year, ordered in lots of 80 bulbs per week at $150 per bulb. The vendor covers all shipping costs. Miami Tanners is not required to inspect the shipment upon entry. Miami Tanners earns 20% on its cash investments. The purchase order lead time is two weeks. The following cost data are available:

Relevant ordering costs per purchase order                                          $53.75

Relevant insurance, materials handling, breakage, and so on, per year         $4.25

Problem 1: How many deliveries will be required at the economic order quantity level?

A) 18 deliveries

B) 37 deliveries

C) 42 deliveries

D) 52 deliveries

E) 20 deliveries