Question: 5. As a new analyst at Cabelas, you are tasked with determining the optimal number of Under Armour Ridge Reaper hunting jackets to order for
5. As a new analyst at Cabelas, you are tasked with determining the optimal number of Under Armour Ridge Reaper hunting jackets to order for the upcoming season. The orders are submitted in the summer for the winter. Each jacket costs $80 and sells for $200. Any not sold by March are discounted 75%. Demand depends on the weather. The distribution of demand is triangular (but must include only whole numbers) with a minimum of 40, maximum of 150, and a most likely value of 80. How many jackets should Cabelas order? Use Analytic Solver to find the solution.
| Economic Order Quantity Model | |||
| Data | |||
| Annual Demand Rate | 15000 | ||
| Ordering Cost | $200.00 | ||
| Unit Cost | $22.00 | ||
| Carrying Charge Rate | 0.2 | ||
| Model | |||
| Order Quantity | 1167.749214 | ||
| Annual Demand Rate | 15000 | ||
| Ordering Cost | $200.00 | ||
| Order cost | $2,569.04 | ||
| Carrying Charge Rate | 0.2 | ||
| Unit Cost | $22.00 | ||
| Inventory cost | $2,569.05 | ||
| Total cost | $5,138.09 |
| Order Quantity | Order cost | Inventory cost | Total cost |
| 500 | $6,000.00 | $1,100.00 | $7,100.00 |
| 600 | $5,000.00 | $1,320.00 | $6,320.00 |
| 700 | $4,285.71 | $1,540.00 | $5,825.71 |
| 800 | $3,750.00 | $1,760.00 | $5,510.00 |
| 900 | $3,333.33 | $1,980.00 | $5,313.33 |
| 1000 | $3,000.00 | $2,200.00 | $5,200.00 |
| 1100 | $2,727.27 | $2,420.00 | $5,147.27 |
| 1200 | $2,500.00 | $2,640.00 | $5,140.00 |
| 1300 | $2,307.69 | $2,860.00 | $5,167.69 |
| 1400 | $2,142.86 | $3,080.00 | $5,222.86 |
| 1500 | $2,000.00 | $3,300.00 | $5,300.00 |
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