A local retailer anticipates an annual demand 15000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level? Round-up to the nearest integer a. 1898 b. 2191 C. None is correct d. 1789 e. 1960
A local retailer anticipates an annual demand 15000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level? Round-up to the nearest integer a. 1898 b. 2191 C. None is correct d. 1789 e. 1960
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 21P
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