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Complete Computer (CC) Is a Retailer of Computer Equipment in Minneapolis

Question 3

Multiple Choice

Complete Computer (CC) is a retailer of computer equipment in Minneapolis with four retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 4,000 units per week. Each unit costs $200 and CC has a holding cost of 20%. The fixed cost of each order (administrative + transportation) is $900. Assume 50 weeks in a year.
-Given that each outlet orders independently and gets its own delivery, the optimal order size at each outlet is [SHOW WORK]


A) 424
B) 3,000
C) 6,000
D) 42,426
E) None of the above

Correct Answer:

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