The Bird feeder sales are 5 units per day and the store opens 360 days per year. The price of bird feeder is $40 per unit. The cost of placing an order (S) with the supplier is $40. Annual holding cost (H) is 16% of a feeder's price. Your boss choses a 360-unit lot size () so that new orders could be placed less frequently. Answering the following questions: a. Define # of orders per year if order Q=360. b. Define annual ordering cost (if Q=360) c. Define average inventory level, assuming zero safety stock. (if Q=360) d. Define annual inventory carrying cost (if Q=360)
The Bird feeder sales are 5 units per day and the store opens 360 days per year. The price of bird feeder is $40 per unit. The cost of placing an order (S) with the supplier is $40. Annual holding cost (H) is 16% of a feeder's price. Your boss choses a 360-unit lot size () so that new orders could be placed less frequently. Answering the following questions: a. Define # of orders per year if order Q=360. b. Define annual ordering cost (if Q=360) c. Define average inventory level, assuming zero safety stock. (if Q=360) d. Define annual inventory carrying cost (if Q=360)
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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The Bird feeder sales are 5 units per day and the store opens 360 days per year. The price of bird feeder is $40 per unit. The cost of placing an order (S) with the supplier is $40. Annual holding cost (H) is 16% of a feeder's price. Your boss choses a 360-unit lot size () so that new orders could be placed less frequently. Answering the following questions:
a. Define # of orders per year if order Q=360.
b. Define annual ordering cost (if Q=360)
c. Define average inventory level, assuming zero safety stock. (if Q=360)
d. Define annual inventory carrying cost (if Q=360)
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