2. Atlanta D = 80,000 annual demand 5% holding cost Purchase cost $13.00/unit Ship quantity = 1,000/container Cost to place PO = $50/PO Shipping cost = $1,200/container Annual order cost Annual holding cost Annual logistics cost Total purchase cost Total annual costs |||||||||||

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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2. Atlanta
D = 80,000 annual demand
5% holding cost
Purchase cost $13.00/unit
Ship quantity = 1,000/container
Cost to place PO = $50/PO
Shipping cost = $1,200/container
Annual order cost
Annual holding cost
Annual logistics cost
Total purchase cost
Total annual costs
||||||||||
=
Transcribed Image Text:2. Atlanta D = 80,000 annual demand 5% holding cost Purchase cost $13.00/unit Ship quantity = 1,000/container Cost to place PO = $50/PO Shipping cost = $1,200/container Annual order cost Annual holding cost Annual logistics cost Total purchase cost Total annual costs |||||||||| =
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