Oil filters are consumed by a garage at fairly steady rate


Oil filters are consumed by a garage at fairly steady rate of 100 per week. The filters cost the garage $15 per unit and it cost the garage $50 per order. Holding cost is 25% of the unit cost. Please determine the following:

  1. Determine the optimal number of filters that need to be ordered each time are order is placed. (Note: The demand should be based on a 52 week)

 

 

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Finance Basics: Oil filters are consumed by a garage at fairly steady rate
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