Basic Blocks Inc.has a manufacturing plant in Houstonand its distributor in Texas. Blocks are transported from Houston
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Question:
Basic Blocks Inc.has a manufacturing plant in Houstonand its distributor in Texas. Blocks are transported from Houston to Texas using trucks. Each order delivery costs $500. The Texas distributor assembles and sells 40 finished houses each day, 5 days a week, and operates 50 weeks a year. Block BZ costs $40 and Basic Blocks Inc. incurs a holding cost of 20% per year.
How many times will Basic Blocks Inc. ship per year if they use the optimal shipping quantity?
how many days of inventory will Basic Blocks Inc.keep under the optimal policy?
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