Question

The ASU maintenance department used 600 brackets during the course of a year. The brackets are purchased from a supplier in Asheville. These brackets cost $18 apiece to purchase. The inventory holding coat as a percentage of cost that ASU uses for their accountants is 16%. Based on the number of orders that are placed each year, the cost of placing an order is $45. The supplier can get the brackets to ASU 3 days after receiving the order. The maintenance department operates 250 days per year. Determine: 1) how many brackets should be ordered when ASU places an order with their supplier, and, 2) how many brackets do they have when they should place a new order with the supplier.

Answer 1