Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nd; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nd; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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![1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell
$20,000.00 worth of a certain decorator table this year. Her accountants have
determined that ordering costs amount to $50.00 per year and that carrying costs
amount to 25% of average inventory while the price of each unit is $500.00. Find
the following:
a) Optimal number of Orders per year, No;
b) Optimal number of Days' supply per order, Na;
c) Optimal number of Dollars per order, Ns;
d) Optimal number of Units per order, Nu.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97c09c75-1ce2-4297-b3c3-a8973b032f3c%2F62e9cca1-26a3-472e-ac20-28b344646523%2Fqjgg7pj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell
$20,000.00 worth of a certain decorator table this year. Her accountants have
determined that ordering costs amount to $50.00 per year and that carrying costs
amount to 25% of average inventory while the price of each unit is $500.00. Find
the following:
a) Optimal number of Orders per year, No;
b) Optimal number of Days' supply per order, Na;
c) Optimal number of Dollars per order, Ns;
d) Optimal number of Units per order, Nu.
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