Master Hatter's demand for hats is 25,000 per year. The order cost is $425 and the carrying cost is $4.50 per unit. The cost paid (price) to the hat manufacturer is $75 per hat. a) Compute the Economic Order Quantity and enter it here (round Up to the nearest unit):
hats
b) The supplier has indicated that Master Hatter can have a price of $70 per hat if he orders at least 5000 at a time.
In order to minimize total costs (inventory plus purchase costs), Master Hatter should order hats and will save dollars each year (do not round -enter dollars and cents).