What is the total setup cost

Assignment Help Management Theories

Reference no: EM131839376

Question: At a Best Buy store, the forecast for the annual demand of a Motorola cell phone is 15600. Demand forecasts are updated weekly and the unit time is one week. Motorola takes 2 weeks to supply an order and the setup cost is $400 per order. The holding cost rate is 10% and one cell phone costs $50.

(a) What is the total setup cost?

(b) What is the total holding cost?

Reference no: EM131839376

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