M. Cotteleer Electronics supplies microcomputercircuitry to a company that incorporates microprocessors intorefrigerators and other home appliances. One of the componentshas an annual demand of 250 units, and this is constant throughoutthe year. Carrying cost is estimated to be Sl per unit per year,and the ordering (setup) cost is $20 per order.a) To minimize cost, how many units should be ordered eachtime an order is placed?b) How many orders per year are needed with the optimal policy?c) What is the average in ventory if costs are minimized?d) Suppose that the ordering (setup) cost is not $20, and Cotteleerhas been ordering 150 units each time an order is placed. Forthis order policy (of Q = 150) to be optima l, determine whatthe ordering (setup) cost would have to be.
M. Cotteleer Electronics supplies microcomputercircuitry to a company that incorporates microprocessors intorefrigerators and other home appliances. One of the componentshas an annual demand of 250 units, and this is constant throughoutthe year. Carrying cost is estimated to be Sl per unit per year,and the ordering (setup) cost is $20 per order.a) To minimize cost, how many units should be ordered eachtime an order is placed?b) How many orders per year are needed with the optimal policy?c) What is the average in ventory if costs are minimized?d) Suppose that the ordering (setup) cost is not $20, and Cotteleerhas been ordering 150 units each time an order is placed. Forthis order policy (of Q = 150) to be optima l, determine whatthe ordering (setup) cost would have to be.
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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| M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 250 units, and this is constant throughout the year. Carrying cost is estimated to be Sl per unit per year, and the ordering (setup) cost is $20 per order. a) To minimize cost, how many units should be ordered each time an order is placed? b) How many orders per year are needed with the optimal policy? c) What is the average in ventory if costs are minimized? d) Suppose that the ordering (setup) cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q = 150) to be optima l, determine what the ordering (setup) cost would have to be. |
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