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How many orders will be placed each year

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Reference no: EM131564117

Question: INVENTORY CONTROL AND PLANNING. The Camera Store sells 960 Yamaha A35 digital cameras per year. Each time an order for cameras is placed with the manufacturer, an ordering cost of $10 is incurred. The store pays $80 for each camera, and the cost for holding a camera (mainly due to the opportunity cost incurred in tying up capital in inventory) is $12/year. Assume that the cameras sell at a uniform rate and no shortages are allowed.

a. What is the EOQ?

b. How many orders will be placed each year?

c. What is the interval between orders?

Reference no: EM131564117

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