Question: Demand for a book at Amazon.com is 295 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10

Demand for a book at Amazon.com is 295 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by

Shipment cost = $65 + 2Q

Assume the annual inventory carrying cost is 24 percent.

a-1. What is Amazon's total cost per shipment?

Cost per shipment ______+ ___________Q

a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.)

Annual holding cost $_______ per book

b. What is the optimal shipment size? (Assuming 52 weeks per year. Round your answer to the nearest whole number.)

Optimal shipment size__________ books

c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Average throughput time________ months

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