You work for a retail company that sells electronic gadgets. One of the gadgets, a popular...

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You work for a retail company that sells electronic gadgets. One of the gadgets, a popular smartwatch, has an annual demand of 10,000 units. Each smartwatch costs $200, and the company incurs a fixed ordering cost of $1,500 every time it places an order for this product. The company aims to maintain a healthy return on capital of 25% per year. The company works 360 days in a year. a. (4 points) What is the optimal order size for this item? (4 points) What is the total annual cost of optimal order size? b. (4 points) What is the optimal time between orders in days? C. d. (4 points) If there is a lead time of 5 days, what is the reorder point? e. If delivery can only be made on the first days of the week, what should be the new optimal order size? (7 points) f. Assume there will be discount of 5% 1000 units of order or higher. What will be the new order size? (7 points) Activate Windows You work for a retail company that sells electronic gadgets. One of the gadgets, a popular smartwatch, has an annual demand of 10,000 units. Each smartwatch costs $200, and the company incurs a fixed ordering cost of $1,500 every time it places an order for this product. The company aims to maintain a healthy return on capital of 25% per year. The company works 360 days in a year. a. (4 points) What is the optimal order size for this item? (4 points) What is the total annual cost of optimal order size? b. (4 points) What is the optimal time between orders in days? C. d. (4 points) If there is a lead time of 5 days, what is the reorder point? e. If delivery can only be made on the first days of the week, what should be the new optimal order size? (7 points) f. Assume there will be discount of 5% 1000 units of order or higher. What will be the new order size? (7 points) Activate Windows

Answer rating: 100% (QA)

Sure I can help you with this The optimal order size for the smartwatch is 4 units This can be found using the economic order quantity EOQ formula which is useful for determining the ideal order quant... View the full answer