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Q. 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 also charges a flat fee of $7 per order for S&H.
CLI uses the economic order quantity as their fixed order size. Suppose the opportunity cost of capital also all other inventory cost is 15percent annually also that there 50 weeks in a yr.
A) Elucidate how many cans of cat food should CLI order at a time?
B) Illustrate what is CLI's total order cost for one yr?
C) Illustrate what is CLI's total holding cost for one yr?
D) Illustrate what are CLI's weekly inventory turns?
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