1)A company distributes air filters for retail stores. Buy your filters from various manufacturers. Filters are purchased in lots of 1,000 units and ordering each order costs $ 40.00. Demand from retail stores is 20,000 filters per month and the cost of holding inventory is $ 0.10 per filter per month. a) What is the optimal quantity that should be ordered in relation to so many pot sizes. b) What would be the optimal amount I should ask if the cost of holding is $ 0.05 per filter per month?
1)A company distributes air filters for retail stores. Buy your filters from various manufacturers. Filters are purchased in lots of 1,000 units and ordering each order costs $ 40.00. Demand from retail stores is 20,000 filters per month and the cost of holding inventory is $ 0.10 per filter per month. a) What is the optimal quantity that should be ordered in relation to so many pot sizes. b) What would be the optimal amount I should ask if the cost of holding is $ 0.05 per filter per month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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1)A company distributes air filters for retail stores. Buy your filters from various manufacturers. Filters are purchased in lots of 1,000 units and ordering each order costs $ 40.00. Demand from retail stores is 20,000 filters per month and the cost of holding inventory is $ 0.10 per filter per month.
a) What is the optimal quantity that should be ordered in relation to so many pot sizes.
b) What would be the optimal amount I should ask if the cost of holding is $ 0.05 per filter per month?
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