Assignment:
Tanaka Suzuki inventory control manager for Itex receives wheel bearings from wheel right a small producer of metal parts. Unfortunatley wheel right can only produce 500 wheel bearings per day Itex recieves 10000 wheel bearings from wheel-right per year. Since Itex operates 200 working days each year its average daily demand for wheel bearings is 50. the ordering cost for Itex is $40 per order and the carring cost is 60 cents per wheel bearing per year.
How many wheel bearings should Itex order from Wheel-right at one time?
Wheel-right has agreed to ship the maximum number of wheel bearings that it produces each day to Itex when an order has been received.
Provide complete and step by step solution for the question and show calculations and use formulas.