Problem 7-42 Minty Airfresheners Ltd. maintains an inventory of packaged bottles with chemical disinfectants to...
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Problem 7-42 Minty Airfresheners Ltd. maintains an inventory of packaged bottles with chemical disinfectants to meet its annual demand for 84,800 packages to service restrooms. Each package costs $4.91, and the order cost is $12225 per order. Carrying costs have been identified as $166 per package Minty Airfresheners bases its orders on the economic ordering quantity. Recently, the wholesaler of the packages, in an attempt to shift the inventory burden to Minty Airfresheners, has offered a 10 percent discount if orders are placed quarterly. Should the present ordering policy of Minty Airfresheners be changed? Yes O NO
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