ABC Company sells 4034 chairs a year at an average price per chair of $195. The carrying cost per unit is $29.85. The company orders 415 chairs at a time and has a fixed order cost of $92 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?
ABC Company sells 2976 chairs a year at an average price per chair of $161. The carrying cost per unit is $15.22. The company orders 500 chairs at a time and has a fixed order cost of $101 per order. The chairs are sold out before they are restocked. What is the economic order quantity?
ABC Company sells 2020 chairs a year at an average price per chair of $154. The carrying cost per unit is $18.79. The company orders 259 chairs at a time and has a fixed order cost of $58.9 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
ABC Company sells 3245 chairs a year at an average price per chair of $148. The carrying cost per unit is $28.47. The company orders 275 chairs at a time and has a fixed order cost of $86 per order. The chairs are sold out before they are restocked. What are the total carrying costs?