Big Break Billiards sells 100 pool tables per year. To reorder, there is a fixed cost of
Question:
Big Break Billiards sells 100 pool tables per year. To reorder, there is a fixed cost of $40 per shipment plus $16 for each pool table. It costs $20 to store one pool table for a year, where storage cost is based on the average number of tables in storage.
Define your variables in words.
x=
r=
Find the Inventory Cost as a function of the number of pool tables.
Use methods of Calculus taught this week to minimize the Inventory Cost: How many times per year should the store order pool tables, and in what lot size, in order to minimize inventory costs?
Minimum Inventory cost_________________________________
Work:
Define your variables in numbers and units.
X=__________________________
Work:
R=__________________________
Work:
Use the number line proof to show that you have minimized the inventory cost.
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase