If Tom decides to order at the economic order quantity, what is the TBO?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Tom Bergman, owner and operator of the Earplug
Superstore, is reviewing the costs associated with the
store's best-selling hearing aid, the BZ15. The data
available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
- Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
If Tom decides to order at the economic order quantity,
what is the TBO?
Transcribed Image Text:Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow. Demand = 25 units/week - Order cost = $3/order Holding cost = $1.50/unit/year The Earplug Superstore operates 52 weeks a year. If Tom decides to order at the economic order quantity, what is the TBO?
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