should order units times a year. he minimum inventory cost is $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:A retailer anticipates selling 3,000 units of its product at a uniform rate over the next year. Each time the retailer
places an order for a units, it is charged a flat fee of $50. Carrying costs are S30 per unit per year. How many
times should the retailer reorder each year and what should be the lot size to mınımize inventory costs? What is
the minimum inventory cost? Use the formula ECQ to obtain your answers.
They should order
times a year
units
The minimum inventory cost is $
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