Question: Demand for a book at Amazon is 2 5 0 units per week ( assume 5 0 weeks per year ) . The book is

Demand for a book at Amazon 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 shipping cost has a fixed cost of $50 per order and a variable cost of $2 per book shipped. So, the cost of the books is $12 per book, plus $50 times the number of orders placed.
Assume the annual inventory carrying cost is 20 percent.
What is the annual holding cost per book?
Note: Round your answer to 2 decimal places.
What is the optimal shipment size?
Note: Assuming 50 weeks per year. Round your answer to the nearest whole number.
What is the average throughput time?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Based on these data, calculate the economic order quantity and reorder point. Hint: Assume demand is deterministic.
Note: Round your answers to the nearest whole number.
The boss is concerned about this model because demand really varies. The standard deviation of demand was determined from a data sample to be 6.15 cans per day. The manager wants a 99.5 percent service probability. Determine a new inventory plan based on this information and the data in a. Use Qopt from a.

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