Question: Assume that there are two items for which we wish to minimize the total cost: the item discussed in question 1 , and a second
Assume that there are two items for which we wish to minimize the total cost: the item discussed in question and a second item with unit value of $unit and annual demand of units. Assume that the holding charges are the same for both items $$year There is a major fixed ordering cost of $ regardless of the items purchased, and a minor fixed ordering cost of $ for the first item and $ for the second again these are quantity independent a What is the optimal number of deliveries per year assuming joint ordering? b What is the optimal order size of item c What is the optimal order size of item
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