Problem
Humans wedding boutique sales approximately a constant 560 wedding dresses every 6 months. humans current policy is to order 40 wedding dresses each time she places an order. it costs Jane $85 to place the order and her annual holding cost rate is 25% of the cost per dress. the boutique shop is open 365 days per year. answer the following questions if the cost per dress is $965.
a) What is the optimal order quantity?
b) How often should human re-order?
c) What is the total annual variable cost all costs associated with ordering, including the cost to purchase the products?