EBK INTRO.TO MANAGEMENT SCIENCE
EBK INTRO.TO MANAGEMENT SCIENCE
12th Edition
ISBN: 9780133825770
Author: Taylor
Publisher: PEARSON
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 16, Problem 1P

a)

Summary Introduction

To determine: The optimal order quantity per order.

a)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the ordering cost (Co) is $450, demand (D) is 1,200 units, and carrying cost (Cc) is $170.

Determine the optimal order quantity per order:

Q=2CoDCc=2×450×1200170=79.7

Hence, the optimal order quantity per order is 79.7 units.

b)

Summary Introduction

To determine: The minimum total annual inventory costs.

b)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the ordering cost (Co) is $450, demand (D) is 1,200 units, and carrying cost (Cc) is $170.

Determine the minimum total annual inventory costs:

TC=CoDQ+CcQ2=450(120079.7)+170(79.72)=6,775.4+6,774.5=13,550

Hence, the minimum total annual inventory costs is $13,550.

c)

Summary Introduction

To determine: The optimal number of orders per year.

c)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the ordering cost (Co) is $450, demand (D) is 1,200 units, and carrying cost (Cc) is $170.

Determine the optimal number of orders per year:

Optimal number of order=DQ=1,20079.7=15.05

Hence, the optimal number of orders per year is 15.05 orders.

d)

Summary Introduction

To determine: The optimal time between orders.

d)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the ordering cost (Co) is $450, demand (D) is 1,200 units, and carrying cost (Cc) is $170.

Determine the optimal time between orders:

Optimal time between orders=Number of working daysOptimal number of orders=36415.05=24.18

Hence, the optimal time between orders is 24.18 days.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Single Exponential Smoothing & Weighted Moving Average Time Series Forecasting; Author: Matt Macarty;https://www.youtube.com/watch?v=IjETktmL4Kg;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License