6. The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is$40.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per yearinventory carrying cost of 25% of unit cost. Assume 250 working days in the year where SKU 005is used. (Noteshaper: Scenario #26)а.What is the combined annual holding and ordering cost of an order size of 200 units forSKU 005?b.How many of SKU 005 should be ordered, to minimize combined ordering and holdingcosts?c. The vendor who sells SKU 005 has just offered a 5% discount for orders of 500 or more.Now how many should be ordered?d. Once the purchasing manager for SKU 005 places an order, the vendor requires 7working days to deliver that order. What should be the purchasing manager's reorderpoint?

Given- Annual Demand (D) = 1,500 unit Unit Cost = $40 Ordering cost (S) = $50 Holding cost (H) = 25%…

Answered: 6. The demand for a particular part…

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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