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Question 1 Sam’s Satellite Emporium wishes to determine the optimal order size for its best-selling satellite dish (Model TS111). Sam has estimated…

Question 1

Sam’s Satellite Emporium wishes to determine the optimal order size for its best-selling satellite dish (Model TS111). Sam has estimated the monthly demand for this model to be 350 units. This model costs Sam $355 to purchase from his supplier. His annual cost to carry inventory is 24% and he estimates that orders cost $31 to process.

What is the total annual cost of holding and ordering these satellite dishes?

 

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