How many cans of cat food should cli order at a time


Cat Lovers Inc (CLI) is the distributor of very popular blend of cat food that sells for $1.25 per can. CLI experiences demand for 500 cans per week on average. they order the cans of food form N&D. N&D sells cans to CLI at $0.50 per can and charges a flat fee of $7 per order fpr S&H.

CLI uses the economic order quntatity as their fixed order cize. Assume the the opportunity cost of capital and all other inventory cost is 15% annually and that there 50 weeks in a year.

A) how many cans of cat food should CLI order at a time?
B) What is CLI's total order cost for one year?
C) What is CLI's total holding cost for one year?
D) What is CLI's weekly inventory turns?

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Operation Management: How many cans of cat food should cli order at a time
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