M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 260 units, and this is constant throughout the year. carrying cost is estimated to be $0.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? nothing units (round your response to two decimal places).

Question

Business

Guest

8 October, 19:38

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 260 units, and this is constant throughout the year. carrying cost is estimated to be $0.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? nothing units (round your response to two decimal places).

+5

Answers (1)

Know the Answer?

Troy Henderson · Answer 1

It depends on how many they want to order at a time if they do 4 orders a year at ordering 65 units each order they will spend $37.25 each order and $149.00 a year or they could buy they whole amount that they are needing for the year say the whole 260 units in one order and spend $86 on one order