Demand for the deskpro computer at best buy is 1000 units, Operation Management

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Demand for the deskpro computer at best buy is 1000 units

Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $2,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has a holding cost of 15 percent. How many computers should Best Buy’s store manager order in each lot? How many orders will the store manager place each year?

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Operation Management: Demand for the deskpro computer at best buy is 1000 units

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