9. A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently, the manager orders twice a month. What is their current ordering quantity? Note: Assume that the demand rate is constant and shortages are not allowed. Select one: a. none of the listed b. 800 c. 1600 d. 400 e. 113

9.

A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently, the manager orders twice a month. What is their current ordering quantity? Note: Assume that the demand rate is constant and shortages are not allowed.

Select one:

a. none of the listed

b. 800

c. 1600

d. 400

e. 113

 

Solution

Monthly Usage = 800

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