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Discount-Mart, a major East Coast? retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting? Manufacturers, in Atlanta. Annual demand is 2,400 ?lamps, ordering cost per order is $0.75?, carrying cost per lamp is $20. As part of its new JIT? program, Discount-Mart has signed a? long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps.
a) What is the economic order? quantity? units per order ?(round your response to the nearest whole? number).
b) What are the total annual costs of holding and ordering (managing) this inventory? ?(round your response to the nearest whole? number)
c) How many orders should Discount-Mart place with Specialty Lighting per year? ?(round your response to the nearest whole? number)
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