Staples buys printer cartridges for $20. The demand for the cartridges is 300 per month. Staples incurs a fixed cost for managing the cartridges of $100. Their annual holding cost is 20%. Calculate The order quantity Average inventory Inventory turns per year
Staples buys printer cartridges for $20. The demand for the cartridges is 300 per month. Staples incurs a fixed cost for managing the cartridges of $100. Their annual holding cost is 20%. Calculate The order quantity Average inventory Inventory turns per year
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
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Question
Staples buys printer cartridges for $20. The
Calculate
- The order quantity
- Average inventory
- Inventory turns per year
- Number of orders Staples makes per year.
- What is the total cost
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