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Operations Management
a) To minimize cost, how many units should be ordered each time an order is placed? 2DS H units (round your response to two decimal places). b) How many orders per year are needed with the optimal policy? Annual Demand Orders per Year=² orders (round your response to two decimal places). c) What is the average inventory if costs are minimized? Average Inventory = units (round your response to two decimal places).

a) To minimize cost, how many units should be ordered each time an order is placed? 2DS H units (round your response to two decimal places). b) How many orders per year are needed with the optimal policy? Annual Demand Orders per Year=² orders (round your response to two decimal places). c) What is the average inventory if costs are minimized? Average Inventory = units (round your response to two decimal places).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 240 units, and this is constant throughout the year. Carrying cost is estimated to be $1.00 per unit per year, and the ordering (setup) cost is $19 per order. a) To minimize cost, how many units should be ordered each time an order is placed? Q= 2DS H b) How many orders per year are needed with the optimal policy? Annual Demand Q Orders per Year = units (round your response to two decimal places). Average Inventory = c) What is the average inventory if costs are minimized? Q 2 orders (round your response to two decimal places). units (round your response to two decimal places). d) Suppose that the ordering (setup) cost is not $21.72, and Cotteleer has been ordering 125 units each time an order is placed. For this order policy (of Q = 125) to be optimal, determine what the ordering (setup) cost would have to be. Ordering (Setup) Cost = S = Q²x₁ = $ H 2D (round your response to two decimal places).
Transcribed Image Text:M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 240 units, and this is constant throughout the year. Carrying cost is estimated to be $1.00 per unit per year, and the ordering (setup) cost is $19 per order. a) To minimize cost, how many units should be ordered each time an order is placed? Q= 2DS H b) How many orders per year are needed with the optimal policy? Annual Demand Q Orders per Year = units (round your response to two decimal places). Average Inventory = c) What is the average inventory if costs are minimized? Q 2 orders (round your response to two decimal places). units (round your response to two decimal places). d) Suppose that the ordering (setup) cost is not $21.72, and Cotteleer has been ordering 125 units each time an order is placed. For this order policy (of Q = 125) to be optimal, determine what the ordering (setup) cost would have to be. Ordering (Setup) Cost = S = Q²x₁ = $ H 2D (round your response to two decimal places).
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