To minimize cost how many units should be ordered each time

Reference no: EM13632490

M. Cottelerr electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 235 units, and this is constant throughout the year. Carrying cost is estimated to be $1.25 per unit per year, and the ordering cost is $19 per order.

To minimize cost how many units should be ordered each time an order is place?____units(round two places)

How many orders per year are needed with the optimal policy?

What is the average inventory if cost are minimized?

Reference no: EM13632490

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