What is the optimal order quantity

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Reference no: EM133852320

Assignment:

A jeweler purchases silver for use in its products. The firm uses 150 grams of silver per week and purchases silver for $2 per gram from a supplier. The cost to hold one gram of silver in inventory for one year is $0.4. Each time the firm orders silver from the supplier, the firm must pay an order processing charge of $15.

What is the optimal order quantity (in grams)?

Note: Assume there are 52 weeks in a year and round your answer to the nearest integer value.

Reference no: EM133852320

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