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The ePaint stocks paint in its warehouse and sells it online on its Internet Web site The store stocks several brands of paint; however, its biggest seller is SW-IT paint. The company wants to determine the optimal order size and total inventory cost for SW-IT paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of $0.75 per gallon, and an ordering cost of $150 per order. They would also like to know the number of orders that will be made annually and the time between orders (i.e.. the order cycle).

The ePaint stocks paint in its warehouse and sells it online on its Internet Web site The store stocks several brands of paint; however, its biggest seller is SW-IT paint. The company wants to determine the optimal order size and total inventory cost for SW-IT paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of $0.75 per gallon, and an ordering cost of $150 per order. They would also like to know the number of orders that will be made annually and the time between orders (i.e.. the order cycle).

Practical Management Science
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 ePaint stocks paint in its warehouse and sells it online on its Internet Web site The store stocks several brands of paint; however, its biggest seller is SW-IT paint. The company wants to determine the optimal order size and total inventory cost for SW-IT paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of $0.75 per gallon, and an ordering cost of $150 per order. They would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle).
Transcribed Image Text:The ePaint stocks paint in its warehouse and sells it online on its Internet Web site The store stocks several brands of paint; however, its biggest seller is SW-IT paint. The company wants to determine the optimal order size and total inventory cost for SW-IT paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of $0.75 per gallon, and an ordering cost of $150 per order. They would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle).
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