Question: 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

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 factory to the retailer when the shipment is Q is given by: shipment cost = $83 + 2Q. Assume the annual inventory carrying cost is 32 percent.

a. What is the cost per shipment and annual holding cost per book?

b. What is the optimal shipment size?

c. 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!

Q:

Demand for a book at Amazon.com is 4 0 0 units per week. 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 factory to...

Q:

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...

Q:

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...

Q:

Demand for a book at Amazon.com is 400 units per week. 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 factory to the...

Q:

Demand for a book at Amazon.com is 400 units per week. 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 factory to the...

Q:

Demand for a book at Amazon.com is 400 units per week. 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 factory to the...

Q:

Demand for a book at Amazon.com is 400 units per week. 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 factory to the...

Q:

Problem 11-35 (Static) Demand for a book at Amazon.com is 250 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit, while the total cost of a shipment...

Q:

Demand for a book at Amazon.com is 250 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit, while the total cost of a shipment from the factory to...

Q:

Demand for a book at Amazon.com is 3 7 0 units per week. 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 factory to...

Q:

? ? ? Beauty Tech Limited ("BT") operates a chain of beauty salons in Hong Kong which is owned by its two founders Joyce Lam and Johnson Ko. Joyce and Johnson are the executive directors of BT and...

Q:

So a firm is projecting their earnings next year to be $5.15 per share and the firm is expected to pay a dividend of $3.43. The investors' required rate of return is 9%. If the sustainable growth...

Q:

Johnson and Johson s depreciation method results in _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ net income being reported on the company s income statement early in an asset s useful life than compared to the...

Q:

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...