A company located in Southwest Virginia that manufactures lighting products purchases aluminum sheet metal as a raw mate

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A Company Located In Southwest Virginia That Manufactures Lighting Products Purchases Aluminum Sheet Metal As A Raw Mate 1 (61.09 KiB) Viewed 35 times

If the manufacturer wishes to minimize the long-run costs of
ordering and holding (carrying) inventory, how many sheets of
aluminum should the manufacturer order for each shipment?
a. <= 1000
b. > 1000 and < 2000
c. > 2000 and < 3000
d. > 3000
A company located in Southwest Virginia that manufactures lighting products purchases aluminum sheet metal as a raw material for its products. The sheet metal is used by the lighting products manufacturer at a fairly steady rate year-round. The manufacturer uses 700 sheets of aluminum per week, on average. The company works 365 days per year. The ordering of a shipment of sheet metal requires a significant amount of paperwork. The expenses of placing the order add up to $ 800 per order. The manufacturer purchases the sheet metal for $ 60 per sheet. The manufacturer sets its holding cost rate to 25% per year.