Mark achin sells 3600 electric motors each year the cost of, Ask an Expert

Management Studies

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 400 units each time he places an order, what would his average inventory be (in units)?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93117179

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