Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $50 + 2Q Assume the annual inventory carrying cost is 20 percent. a-1. What is Amazon's total cost per shipment? Cost per shipment a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost$ | ]per book b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size[ books c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $50 + 2Q Assume the annual inventory carrying cost is 20 percent. a-1. What is Amazon's total cost per shipment? Cost per shipment a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost$ | ]per book b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size[ books c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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