Alocal retailer anticipates an annual demand 12000 units of a product. The retailersallows shortages for that product, and these shortages are backordered at a rate of 3 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 order size in units? Round-up to the nearest integer a. 2530 b. 12000 c. None is correct d. 0 e. 250

Alocal retailer anticipates an annual demand 12000 units of a product. The retailersallows shortages for that product, and these shortages are backordered at a rate of 3 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 order size in units? Round-up to the nearest integer a. 2530 b. 12000 c. None is correct d. 0 e. 250

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 21P

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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 Oe. 1960 NEXT PAGE
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