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Tele-Reco is a new specialty store that sells television sets, videotape recorders, video games, and other television-related products. A new Japanese-manufactured videotape recorder costs Tele-Reco $600 per unit. Tele-Reco's inventory carrying cost is figured at an annual rate of 22 percent. Ordering costs are estimated at $70 per order.
a) If demand for the new videotape recorder is expected to be constant at a rate of 20 units per month, what is the recommended order quantity for the VCR?
b) What are the estimated annual inventory holding and ordering costs associated with this product?
c) How many orders will be placed per year?
d) With 250 working days per year, what is the cycle time for this product?
Feb 04 2020 View more View Less
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