Question: Demand for a book at Amazon is 130 units per week (assume 52 weeks per year). The book is supplied to Amazon from the book
Demand for a book at Amazon is 130 units per week (assume 52 weeks per year). The book is supplied to Amazon from the book publisher for $8 per book plus the cost of shipping the order. The shipping cost has a fixed cost of $47 per order and a variable cost of $2 per book shipped. So, the cost of the books is $10 per book, plus $47 times the number of orders placed. Assume the annual inventory carrying cost is 10 percent.
What is the average throughput time (in months)? Round to 3 decimal places
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