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 annual holding cost per book?

What is the optimal shipment size?

What is the average throughput time?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Crane Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2024. Assets Current Assets Cash...

Demand for a book at Amazon.com is 250 units per week (assume 50 weeks per year). The book is supplied to Amazon from the book publisher for $10 per book plus the cost of shipping the order. The...

Demand for a book at Amazon.com is 400 units per week for 52 weeks. The product is supplied to the retailer from a factory. The factory pays $9 per unit., while the total cost of a shipment from the...

Demand for a book at Amazon is 1 3 0 units per week ( assume 5 2 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...

Problem 2 0 - 3 5 ( Algo ) Demand for a book at Amazon is 2 0 5 units per week ( assume 5 2 weeks per year ) . The book is supplied to Amazon from the book publisher for $ 8 per book plus the cost of...

Demand for a book at Amazon.com is 130 units per week. The product is supplied to the retailer from a factory. The factory pays $8 per unit. While the total cost of a shipment from the factory to the...

Demand for a book at Amazon is 3 8 5 units per week ( assume 5 2 weeks per year ) . The book is supplied to Amazon from the book publisher for $ 9 per book plus the cost of shipping the order. The...

Demand for a book at Amazon is 2 5 0 units per week ( assume 5 0 weeks per year ) . The book is supplied to Amazon from the book publisher for $ 1 0 per book plus the cost of shipping the order. The...

Demand for a book at Amazon is 4 0 0 units per week ( assume 5 2 weeks per year ) . The book is supplied to Amazon from the book publisher for $ 9 per book plus the cost of shipping the order. The...

Ask a manager how quality, efficiency, and responsiveness to customers are defined and measured in his or her organization.

I Ind the distrume between the two points, I 1 ( 2 , - 1 , 3 ) and I 5 ( 5 , 3 , 3 ) Antert a ? 2 1 3 b ? 2 2 4 c . 7 2 ( 1 ) 7 e . None of the alowe

A chain coffee shop company is considering adding a new line of business of offering small foods and snacks. The CEO of the company hired you as a financial analyst to help the company decide if it...

In the initial test of the salk vaccine for polio, 400 children were selected and divided into 2 groups of 200. one group was vaccinated with the salk vaccine while the second group was vaccinated...

The ireversible gas-phase nonelementary reaction A+ 2B C is to be carried out isothermally in a constant-pressure batch reactor. The feed is at a temperature of 227C, a pressure of 1013 kPa, and its...

Using the Widget Production dataset below, develop a control chart (in Excel) and identify all anomalies (ie Runs, Trends, and Exceeding Control Points). For the following four (4) Customers...

What costs are included for a bottle of water at the JFK International airport if activity-based costing (ABC) is used for product costing? In a recent Wall Street Journal article (The Price You Pay...

A complete contract between shareholders and managers A ) would specify exactly what the manager will do under each of all possible future contingencies. B ) would be an expensive contract to write...

=+f. Does it promise a benefit or solve a problem?

=+How do they reach out and tap you on the arm like a good friend about to confide a secret?

=+ Why do some seem like a personalized, individual message?