# Question: M Cotteleer Electronics supplies microcomputer circuitry to a c

M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 250 units, and this is constant throughout the year. Carrying cost is estimated to be $1 per unit per year, and the ordering cost is $20 per order.

(a) To minimize cost, how many units should be ordered each time an order is placed?

(b) How many orders per year are needed with the optimal policy?

(c) What is the average inventory if costs are minimized?

(d) Suppose that the ordering cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q = 150) to be optimal, determine what the ordering cost would to be.

(a) To minimize cost, how many units should be ordered each time an order is placed?

(b) How many orders per year are needed with the optimal policy?

(c) What is the average inventory if costs are minimized?

(d) Suppose that the ordering cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q = 150) to be optimal, determine what the ordering cost would to be.

## Answer to relevant Questions

Race One Motors is an Indonesian car manufacturer At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponents at a rate of 12,500 per year ...Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per ...Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level.(a) What value of Z should be ...Cynthia Knottās oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $2 per pound. Cynthia ...Airline passengers today stand in numerous lines, are crowded into small seats on mostly full airplanes, and often spend time on taxiways because of air-traffic problems or lack of open gates. But what gripes travelers ...Post your question