Problemthe new office supply discounter paper clips etc pce, Ask an Expert

Management Studies

Problem:

The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair which costs $300. The annual holding cost rate is 40%, annual demand is 900, and the order cost is $20 per order. The lead time is 4 days. The store is open 300 days per year.

Required:

What is the optimal order quantity? Solve the problem and show all work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91168523

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