Manufacturer produce ‘’furniture’’ receives the ‘rivets’ for furniture whose amount is $100 per shipment. The firm uses 25% interest on holding cost on rivets whose per unit prices is 3 cents. If the optimal order quantity is 50,597 rivets per order and production is 200 furniture/month, find how many rivets required per furniture.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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A Manufacturer produce ‘’furniture’’ receives the ‘rivets’ for furniture whose amount is $100 per shipment. The firm uses 25% interest on holding cost on rivets whose per unit prices is 3 cents. If the optimal order quantity is 50,597 rivets per order and production is 200 furniture/month, find how many rivets required per furniture. 

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