Answer:
59 orders
Explanation:
For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Carrying cost = $875 × 20% = $175
And, other items values would remain the same
ow put these values to the above formula
So, the value would be equal to
= [tex]\sqrt{\frac{2\times \text{3,000}\times \text{\$75}}{\text{\$175}}}[/tex]
= 50.71 units
Now The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $3,000 ÷ 50.71 units
= 59 orders
