Consider a product with constant annual demand of 900 units, fixed ordering cost of $80 per order, and inventory cost of 10% per unit per year. The product’s cost price is $100 per unit. It is sold in $120 to the customers. Determine required time between orders, considering 360 days per year.
a) 37 days
b) 42 days
c) 45 days
d) 48 days
e) 51 days
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Answer:
48. days...................
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