1. The Go - Pro Extreme is a retail outlet that deals exclusively with Go-Pro cameras. The manager is trying to decide on an inventory and reorder policy for the economic travel use of a Go -Pro camera. Each economic model Go-Pro camera costs $220 and demand is about 990 per year distributed evenly throughout the year. Reordering costs are $98 per order and holding costs are figured at 25% of the cost of the item. The shop is open 300 days a year (6 days a week and closed two weeks in January for New Years Holiday). Lead time is 50 working days. What is the optimal order quantity? *Enter the number only** *Do not use any words or symbols** *Round your answer to two decimal places only**

1. The Go - Pro Extreme is a retail outlet that deals exclusively with Go-Pro cameras. The manager is trying to decide on an inventory and reorder policy for the economic travel use of a Go -Pro camera. Each economic model Go-Pro camera costs $220 and demand is about 990 per year distributed evenly throughout the year. Reordering costs are $98 per order and holding costs are figured at 25% of the cost of the item. The shop is open 300 days a year (6 days a week and closed two weeks in January for New Years Holiday). Lead time is 50 working days. What is the optimal order quantity? *Enter the number only** *Do not use any words or symbols** *Round your answer to two decimal places only**

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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