AV City stocks and sells a particular brand of laptop. Itcosts the firm $625 each time it places an order with themanufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500units, with a constant demand rate throughout the year.Orders are received within minutes after placement from alocal warehouse maintained by the manufacturer. The storepolicy is never to have stockouts of the laptops. The storeis open for business every day of the year except ChristmasDay. Determine the following:a. Optimal order quantity per orderb. Minimum total annual inventory costsc. The number of orders per yeard. The time between orders (in working days)

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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AV City stocks and sells a particular brand of laptop. It
costs the firm $625 each time it places an order with the
manufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500
units, with a constant demand rate throughout the year.
Orders are received within minutes after placement from a
local warehouse maintained by the manufacturer. The store
policy is never to have stockouts of the laptops. The store
is open for business every day of the year except Christmas
Day. Determine the following:
a. Optimal order quantity per order
b. Minimum total annual inventory costs
c. The number of orders per year
d. The time between orders (in working days)

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