can you answer b and c
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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can you answer b and c

Transcribed Image Text:Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges
Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is
given by
Shipment cost = $50 + 2Q
Assume the annual inventory carrying cost is 20 percent.
a-1. What is Amazon's total cost per shipment?
Cost per shipment
50
+
12
a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.)
Annual holding cost$
2.4
per book
b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.)
Optimal shipment size
books
c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Average throughput time
months
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