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The EastCoasters Bicycle Shop operates 364 days a year, closing only on Christmas Day. The shop pays $300 for a particular bicycle purchased from the manufacturer. The annual holding cost per bicycle is estimated to be 25% of the dollar value of inventory. The shop sells an average of 18 bikes per week. The ordering cost for each order is $250. Determine the optimal order quantity and the total minimum cost.
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OPERATIONS AND SUPPLY CHAIN MANAGEMENT
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- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning