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How many orders should ace in the sleeve place next year

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Ace in the Sleeve Co, an online retailer, sells decks of playing cards. The company purchases each deck from its supplier for $2.50, requiring a $0.75 annual return on investment on each ball sold. In 2021, annual demand for playing cards is expected to be 182,000 decks. Relevant ordering costs are $25 per purchase order. The required cost for insurance & materials handling is $1.47 per ball per year.

Problem 1: How many orders should Ace in the Sleeve place next year?

Reference no: EM132864682

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