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Operations Management
1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nas c) Optimal number of Dollars per order, Ns;

1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nas c) Optimal number of Dollars per order, Ns;

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nas c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
Transcribed Image Text:1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nas c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
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