An Inventory Problem
EZ Seat sells 6000 chairs per year - no seasonal patterns
Each chair costs them $600
Every time EZ Seat places an order they incur a fixed charge of $400
It costs EZ Seat 20% of the inventory value per year to carry the inventory.
How many units should they order at a time?
o= 400
s = 6000
2= 2
c = 120.00
Show calculation and anwser