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Problem:

Borboux USA sells New Zealand hand made leather balloons to American Customers. For one of their more popular lines, the manager estimates that:

18,000 balloons will be sold in the coming year

each balloon is valued at $30 US

inventory carrying costs are estimated at 16%

each order placeced in the parent company company in New Zealand costs $200

assume 360 working days per year

Question 1) How many orders will Boboux Usa need to place to the parent company in New Zealand?

A) 15 orders

B) 10 orders

C) 20 orders

d) 18 orders

Solve the given numerical problem.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91162416

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