QUESTION 5 Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and are shipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs are based on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of the equipment. The company estimates that this step costs $180. Assume that 1 year=365 days. What is the maximum dollar investment in inventory that the company has in these disks? 805.54
QUESTION 5 Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and are shipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs are based on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of the equipment. The company estimates that this step costs $180. Assume that 1 year=365 days. What is the maximum dollar investment in inventory that the company has in these disks? 805.54
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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![QUESTION 5
Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and are
shipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs are
based on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of the
equipment. The company estimates that this step costs $180. Assume that 1 year=365 days.
What is the maximum dollar investment in inventory that the company has in these disks?
805.54](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cdf97f1-c84d-4ee2-a8d1-11369b502a84%2F2575f5cb-709a-48a6-9b34-4f38443d79db%2F03b266_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 5
Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and are
shipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs are
based on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of the
equipment. The company estimates that this step costs $180. Assume that 1 year=365 days.
What is the maximum dollar investment in inventory that the company has in these disks?
805.54
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