Question: 1. What order quantity will minimize the total inventory? 2. What is the oder quantity? 3. What are the holding costs? 4. What is the
| 1. What order quantity will minimize the total inventory? | |
| 2. What is the oder quantity? | |
| 3. What are the holding costs? | |
| 4. What is the order cost? | |
| 5. What are the unit costs? | |
| 6. What is the total cost? |
| Order Quantity, Q | Unit Cost | Setup Cost | Holding Cost | Total Unit Cost | Total Costs |
| 333 | $ 5.00 | $ 735.00 | $ 166.67 | $ 25,000.00 | $ 25,901.67 |
| 417 | $ 5.00 | $ 588.00 | $ 208.33 | $ 25,000.00 | $ 25,796.33 |
| 500 | $ 5.00 | $ 490.00 | $ 250.00 | $ 25,000.00 | $ 25,740.00 |
| 583 | $ 5.00 | $ 420.00 | $ 291.67 | $ 25,000.00 | $ 25,711.67 |
| 667 | $ 5.00 | $ 367.50 | $ 333.33 | $ 25,000.00 | $ 25,700.83 |
| 750 | $ 5.00 | $ 326.67 | $ 375.00 | $ 25,000.00 | $ 25,701.67 |
| 833 | $ 5.00 | $ 294.00 | $ 416.67 | $ 25,000.00 | $ 25,710.67 |
| 917 | $ 5.00 | $ 267.27 | $ 458.33 | $ 25,000.00 | $ 25,725.61 |
| 1000 | $ 4.80 | $ 245.00 | $ 480.00 | $ 24,000.00 | $ 24,725.00 |
| 1083 | $ 4.80 | $ 226.15 | $ 520.00 | $ 24,000.00 | $ 24,746.15 |
| 1167 | $ 4.80 | $ 210.00 | $ 560.00 | $ 24,000.00 | $ 24,770.00 |
| 1250 | $ 4.80 | $ 196.00 | $ 600.00 | $ 24,000.00 | $ 24,796.00 |
| 1333 | $ 4.80 | $ 183.75 | $ 640.00 | $ 24,000.00 | $ 24,823.75 |
| 1417 | $ 4.80 | $ 172.94 | $ 680.00 | $ 24,000.00 | $ 24,852.94 |
| 1500 | $ 4.80 | $ 163.33 | $ 720.00 | $ 24,000.00 | $ 24,883.33 |
| 1583 | $ 4.80 | $ 154.74 | $ 760.00 | $ 24,000.00 | $ 24,914.74 |
| 1667 | $ 4.80 | $ 147.00 | $ 800.00 | $ 24,000.00 | $ 24,947.00 |
| 1750 | $ 4.80 | $ 140.00 | $ 840.00 | $ 24,000.00 | $ 24,980.00 |
| 1833 | $ 4.80 | $ 133.64 | $ 880.00 | $ 24,000.00 | $ 25,013.64 |
| 1917 | $ 4.80 | $ 127.83 | $ 920.00 | $ 24,000.00 | $ 25,047.83 |
| 2000 | $ 4.75 | $ 122.50 | $ 950.00 | $ 23,750.00 | $ 24,822.50 |
| 2083 | $ 4.75 | $ 117.60 | $ 989.58 | $ 23,750.00 | $ 24,857.18 |
| 2167 | $ 4.75 | $ 113.08 | $ 1,029.17 | $ 23,750.00 | $ 24,892.24 |
| 2250 | $ 4.75 | $ 108.89 | $ 1,068.75 | $ 23,750.00 | $ 24,927.64 |
| 2333 | $ 4.75 | $ 105.00 | $ 1,108.33 | $ 23,750.00 | $ 24,963.33 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help