Q4 Lab2 Subject: Production And operation Mnagement please answer ASAP QUESTION 4 (INVENTORY MANAGEMENT: QUANTITY DISCOUNT MODEL)A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a priceof $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones,and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is25 stones per day, and ordering costs are $48.a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize totalannual cost.b. If annual carrying costs are 30 percent of unit cost, what is the optimal order size?c. If lead time is six working days, at what point should the company reorder?

EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…

a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. b. If annual carrying costs are 30 percent of unit cost, what is the optimal order size? c. If lead time is six working days, at what point should the company reorder?

a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. b. If annual carrying costs are 30 percent of unit cost, what is the optimal order size? c. If lead time is six working days, at what point should the company reorder?

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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