Talisman Games, a local gaming store, stocks the 4th edition of the rulebook of a popular pen-and-paper role-playing game –Daggers and Dungeons. Talisman orders the rulebooks directly from its publisher –Wizards of the Shore (WotS). The fixed order cost is $20 per order. Demand for the rulebook each week is 4 units with no variability. Talisman estimates that the average cost of managing the inventories is about $5 per unit per week. Q1. What is Talisman’s optimal inventory control policy; that is, its optimal order quantity Q*? Q2. What is the average inventory of the rulebooks in Talisman? How long on average does a rulebook spend in Talisman before it is sold to a customer?
Talisman Games, a local gaming store, stocks the 4th edition of the rulebook of a popular pen-and-paper role-playing game –Daggers and Dungeons. Talisman orders the rulebooks directly from its publisher –Wizards of the Shore (WotS). The fixed order cost is $20 per order. Demand for the rulebook each week is 4 units with no variability. Talisman estimates that the average cost of managing the inventories is about $5 per unit per week.
Q1. What is Talisman’s optimal inventory control policy; that is, its optimal order quantity Q*?
Q2. What is the average inventory of the rulebooks in Talisman? How long on average does a rulebook spend in Talisman before it is sold to a customer?
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