What are the expected number of orders

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WowGreens is a local convenience store. One of the items they sell is SoftHair brand of shampoo. The unit purchase cost of a shampoo bottle is $25, and the fixed ordering cost is $50 per order. The annual inventory holding cost for the shampoo bottles is 12% of the purchase cost. The store faces the demand of 600 shampoo bottles every year. Assume that the consumption rate of shampoo is constant all over the year. What is the economic order quantity? What are the expected number of orders per year and expected time between placements of two consecutive orders with the economic order quantity

Reference no: EM132977438

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