Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r
1 answer:
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Answer:
100 times per year
Explanation:
Data provided in the question:
Annual Demand , D = 320,000 boxes
Cost of storing one box, C = $10
Plant set up cost for production, c = $160
Now,
The optimal ordering quantity =
or
The optimal ordering quantity =
or
= 3200
Therefore,
Number of timer in year company produce boxes =
=
= 100 times per year