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Business, 18.06.2020 02:57 live4dramaoy0yf9

An allergy products superstore buys 6000 of their most popular model of air filters each year. The price of the air filters is $18. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are 20% of the price. The supplier lead time is 2 days. The store operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts. What is the store’s minimum total annual cost of placing orders & carrying inventory?

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