Frank Taylor has recently become the manager of a small bookstore located in Harvard Square, and he
Question:
Frank Taylor has recently become the manager of a small bookstore located in Harvard Square, and he is determined to improve the bookstore’s supply chain operations. He is currently looking into one of their wildly popular short books on the history of Harvard University. The demand for this book is exceptionally stable – there is virtually no variability. The bookstore sells about 3000 of these books annually to tourists for $10 per copy. Frank discovered that they have been ordering the books using an order quantity of 478 units and that it costs the bookstore $100 to place an order. He also found out that the bookstore pays the publisher $2 per copy and that the bookstore’s inventory holding cost is 0.28 $/$/year.
Assume 52 weeks per year.
Q1 Purchase cost:
Q2 Holding cost:
Q3 Order cost:
Q4 Ordering frequency (in weeks):
Round your answer to one decimal place.
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi