Videoworld is a discount store that sells color televisions. The annual demand for color televisionsets is 400. The cost per order from the manufacturer is $650. The carrying cost is $45 perset each year. The store has an inventory policy that allows shortages. The shortage cost per setis estimated at $60. Determine The optimal order size

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Videoworld is a discount store that sells color televisions. The annual demand for color television
sets is 400. The cost per order from the manufacturer is $650. The carrying cost is $45 per
set each year. The store has an inventory policy that allows shortages. The shortage cost per set
is estimated at $60. Determine The optimal order size

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