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a distributor of small appliances wishes to calculate the optimal order quantitiy for replenishin


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a distributor of small appliances wishes to calculate the optimal order quantitiy for replenishing it stock of a particular washing machine. demand for the 200$ machine is stable throughout the year and averages about 1000 units annually. each order involves the cost of transportation, receiving and inspection, accounting for expenses of 500$ per order. holding costs are 20% per year. 

a. what order quantitiy minimizes the annual replenishment cost

b. how does the optimal cost break down into holding and carrying components?

 


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Solution #00070057

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a distributor of small appliances wishes to calculate the optimal order quantitiy for replenishin.zip

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This paper was answered on 14-Oct-2020

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