purchased in 6 kg barrels at €170 each, freight cost is €18 per shipment plus €1 per kg. cost is estimated to 20% of the value. hase policy is to buy 20 barrels each time, how much time can be spent on administra e order quantity should be considered optimal. The boat-builder costs €25/h. nt is 30 minutes, what would be the optimal order quantity?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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The small boatyard WhiteKayaks are building epoxy kayaks, last year they built 156. Each of those requires
12 kg of epoxy, purchased in 6 kg barrels at €170 each, freight cost is €18 per shipment plus €1 per kg. The
annual carrying cost is estimated to 20% of the value.
a. If the purchase policy is to buy 20 barrels each time, how much time can be spent on administrative
work if the order quantity should be considered optimal. The boat-builder costs €25/h.
b. If time spent is 30 minutes, what would be the optimal order quantity?
Transcribed Image Text:The small boatyard WhiteKayaks are building epoxy kayaks, last year they built 156. Each of those requires 12 kg of epoxy, purchased in 6 kg barrels at €170 each, freight cost is €18 per shipment plus €1 per kg. The annual carrying cost is estimated to 20% of the value. a. If the purchase policy is to buy 20 barrels each time, how much time can be spent on administrative work if the order quantity should be considered optimal. The boat-builder costs €25/h. b. If time spent is 30 minutes, what would be the optimal order quantity?
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