Answered: Inventory Control A company anticipates… | bartleby

Practical Management Science

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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Inventory Control
A company anticipates there will be a demand for 20,000 copies of a certain
book during the next year/. It costs the company $0.50 to store a book for 1
year. Each time it must print additional books, it costs $200 to set up the
equipment.
NOTE: We assume that the demand is uniform.
Let
• * = number of books printed during each printing run
• y = number of printing runs

Use the Inventory Control information above to answer this question.
The total setup cost for the year is
Question 10
y.
Use the Inventory Control information above to answer this question.
Since we assume the demand is uniform, the number of books in storage
between printing runs will decrease from a to
X
The average number in storage for each day is
2

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