Question: Demand for a book at Amazon is 3 8 5 units per week ( assume 5 2 weeks per year ) . The book is

Demand for a book at Amazon is 385 units per week (assume 52 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 shipping cost has a fixed cost of $95 per order and a variable cost of $2 per book shipped. So, the cost of the books is $11 per book, plus $95 times the number of orders placed.
Assume the annual inventory carrying cost is 31 percent.
What is the annual holding cost per book?
Note: Round your answer to 2 decimal places.
What is the optimal shipment size?
Note: Assume 52 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.

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