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A local sporting kit store sells a light weight skateboard at a steady rate of 60 per month. The skateboard is purchased from a supplier with the unit price of $24. No shortage allowed. The store estimates that it costs $2 in paperwork and labor to place an order for the skateboard. The annual interest rate is 12%.
a) What is the inventory holding cost per unit skateboard per month?
b) Determine the optimal order quantity for skateboard.
c) What is the time between the placements of two consecutive orders?
d) If replenishment lead time is one weeks, determine the reorder point.
Compare the result in (a) to the probability that a fatality involved a rollover and comment on whether SUVs, Vans, and pickups are generally more prone to rollover accidents that other vehicles.
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Successful implementation of the business plan that relies on innovation and entrepreneurship requires an organizational structure that
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