What are the estimated annual inventory holding

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YTV is a new specialty store that sells TV's, digital recorders, video games and other television related products. A new manufactured digital recorder costs YTV $70. YTV's inventory carrying cost is figured at an annual rate of 20 percent. Ordering costs are estimated to be $70 per order. a) if demand for the new digital recorder is expected to be at a constant rate of 50 items per month, what is the recommended order quanitity for the digital recorders? b) what are the estimated annual inventory holding and ordering costs associated with the product? c) how many orders will be placed per year? d) with 360 working days per year, what is the cycle time for this product?

Reference no: EM131677762

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