[Solution] The demand for widgets is 200 per day. Each widget cost $2. When we decide to place an order for widgets we spend $150. Storing widgets costs
Question: The demand for widgets is 200 per day. Each widget cost $2. When we decide to place an order for widgets we spend $150. Storing widgets costs us $.10 per widget per month. Our cost of capital is \(30 \%\) per year. Determine how many widgets should be ordered each time an order is placed and the total annual cost of the inventory policy. List the assumptions you made in order to solve the problem.
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