Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm$450 each time it places an order with the manufacturer for the personal computers. The costof carrying one PC in inventory for a year is $170. The store manager estimates that total annualdemand for the computers will be 1,200 units, with a constant demand rate throughout theyear. Orders are received within minutes after placement from a local warehouse maintainedby the manufacturer. The store policy is never to have stockouts of the PCs. The store is openfor business every day of the year except Christmas Day. Determine The optimal 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
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Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm
$450 each time it places an order with the manufacturer for the personal computers. The cost
of carrying one PC in inventory for a year is $170. The store manager estimates that total annual
demand for the computers will be 1,200 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 PCs. The store is open
for business every day of the year except Christmas Day. Determine The optimal time between orders (in working days)

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