*Please note - these are new numbers from the previous problems* A product has an annual demand of 15,696 units. The unit price is $52 each and the ordering cost is $71. The store uses a yearly inventory holding cost of 20% of the unit price. The company has decided to order 46 units every time they order and to order 92 times per year. There are 250 business days in a year. How many days should they wait between orders

The company should wait 2.72 days.

Explanation:

a) Data and Calculations:

Annual demand = 15,696 units

Unit price = $52

Ordering cost = $71

Inventory holding cost = 20% of $52 = $10.40 per unit

Determined order quantity = 46 units

Number of orders per year = 92 times

Total quantity that can be ordered = 4,232 (46 * 92)

This implies that there should be inventory of 11,464 at the beginning of the period (15,696 - 4,232)

The days to wait between orders = 2.72 days (250/92)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know