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 units per week assume weeks per year The book is supplied to Amazon from the book publisher for $ per book plus the cost of shipping the order. The shipping has a fixed cost of $ per order and a variable cost of $ per book shipped. So the cost for the books is $ per book, plus $ times the number of orders placed.
Assume the annual inventory carrying cost is percent.
What is the annual holding cost per book?
Note: Round your answer to decimal places.
What is the optimal shipment size?
Note: Assuming weeks per year. Round your answer to the nearest whole number.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
