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Inventory Management You are a member of E.T. Electronics' management team. The team is interested...

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Accounting

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Inventory Management You are a member of E.T. Electronics' management team. The team is interested in adding a nevw product to the store's line of products, a Japanese robot called Hirata. This robot is very popular in Japan and is expected to make its mark in the U.S. market. It is capable of receiving 50 commands and performing 200 functions. E.T. Electronics' team expects to sell 1,000 units of Hirata during the upcoming year. The annual cost of carrying a Hirata robot in inventory is estimated to be $100, and the cost of placing a new order of the Hirata robot by sea from Japan is $250. E.T. Electronics' team is also considering ordering the robot by air from Japan, a faster but more expensive route that will cost $350 1. E.T. Electronics' team is interested to know the optimal order size of the Hirata robots. You know that the optimal order size equals the square root of 2 multiplied by the annual sales (i.e., demand), multiplied by the ordering cost and divided by the carrying cost. What is the optimal order size that E.T. Electronics' team should place by sea or by air? Demand Carrying Cost Ordering Cost Optimial Size of an Order O 84 by sea, 71 by air O71 by sea, 84 by air

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