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Modern Furniture Stores sells modern coffee tables. The expected demand for next year is 500 coffee tables. Tables are handmade in Seattle. The cost of ordering a set of tables is $500. In addition the average cost of storing a coffee table is 150 dollars per year.
a. What is the optimal order size?
b. What is the total inventory cost per year?
c. What is the inventory turnover?
d. What is the inventory cycle?
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Alwan decides to hire a second pharmacist, Ajay Aggerwal, whom he went to school with and who operates at the same speed in filling prescriptions. How will the answers to parts (a) and (b) change?
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