How many desks should be ordered

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Reference no: EM131726279

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.

Each time an order is placed, how many desks should be ordered?

Reference no: EM131726279

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