mazon sells X units (X= 2017056) of consumer electronics from Samsung every year. Each unit costs $120 and Amazon has a holding cost of 20 percent. The fixed clerical and transportation cost for each order Amazon places with Samsung is $4,000. What is the optimal size of the order that Amazon should place with Samsung? What is the total annual cost incurred by Amazon for optimal lot size. With the goal of reducing inventories, Amazon would like to reduce the size of each order it places with Samsung to 2,000 units .How much should it reduce the fixed cost per order for an order of 2,000 units to be optimal?

mazon sells X units (X= 2017056) of consumer electronics from Samsung every year. Each unit costs $120 and Amazon has a holding cost of 20 percent. The fixed clerical and transportation cost for each order Amazon places with Samsung is $4,000. What is the optimal size of the order that Amazon should place with Samsung? What is the total annual cost incurred by Amazon for optimal lot size. With the goal of reducing inventories, Amazon would like to reduce the size of each order it places with Samsung to 2,000 units .How much should it reduce the fixed cost per order for an order of 2,000 units to be optimal?

Name: Amazon sells X units (X= 2017056) of consumerelectronics from Samsung
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Description: Amazon sells X units (X= 2017056) of consumerelectronics from Samsung every year. Each unit costs $120 and Amazon hasa holding cost of 20 percent. The fixed clerical and transportation cost foreach order Amazon places with Samsung is $4,000. What is

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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