retailer of mobile phones in Australia that works 250 days in a year. The manager would like you to determine a minimum-cost inventory plan for an upcoming mobile phone to be launched in the market. They have collected the following information: • Annual demand: 700 phones • Phone cost: $1,793 each • Phone RRP: $1,949 each • Net weight: 169 g each • Tare weight: 61 g each • Annual inventory holding cost:
Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager would like you to determine a minimum-cost inventory plan for an upcoming mobile phone to be launched in the market. They have collected the following information:
• Annual demand: 700 phones • Phone cost: $1,793 each
• Phone RRP: $1,949 each
• Net weight: 169 g each
• Tare weight: 61 g each
• Annual inventory holding cost: 30%
• Cost per order to replenish inventory: $82
• Annual in-transit holding cost: 10%
• Freight rate (per kg): $8.10
• Freight rate (per consignment): $301.50 (i.e. handling fee, dangerous good fee, anlithium battery fee)
• Time to process order for freight: 1 days • Freight transit time: 4 days
Solve this problem using a non-linear programming (NLP) model and your model should generate only integer results for economic order quantity and the number of orders.
1. Economic order quantity for the phone in units and in kg
2. The total cost for purchasing the phones
3. The total cost for ordering
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