What order quantity will you recommend in this contract

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Reference no: EM133986032

Assignment:

It is time to develop your inventory policy for Old Spice Swagger 2 in 1 Shampoo & Conditioner packs. The packs will cost $10.00 each. You have collected data on your previous usage/sales and you estimate annual demand for the product to be 20,000 units with a holding cost of 15% of the unit cost. You had a MBA class come in and perform a purchasing analysis, and they estimate that considering logistics, it costs $750 each time you place an order.

What order quantity will you recommend in this contract and why? At your recommended order quantity, what will be the total cost of the inventory model/policy? Please provide analytical support for your answer. SHOW YOUR WORK.

Reference no: EM133986032

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