A
Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,600 lamps, ordering cost per order is $0.50, carrying cost per lamp is $20. As part of its new JIT program, Discount-Mart has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps.
a) What is the economic order quantity? 11 units per order (round your response to the nearest whole number).
b) How many orders will be placed? per year (round your response to the nearest whole number).