Question: Demand for Container X - 1 0 0 is 1 0 0 per week. There are 5 2 weeks per year. The lead time to

Demand for Container X-100 is 100 per week. There are 52 weeks per year. The lead time to get new containers is 3 weeks. The interest rate (holding cost rate) is 40%. The cost per order is $94 and the cost per container is $29. One decimal point for all calculations.
What is the optimal ordering quantity?
a.
324.6
b.
290.3
c.
2600
d.
410.6
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What is the annual ordering cost if the optimal ordering quantity is used?
a.
1505.9
b.
1273
c.
1683.8
d.
1190.5
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What is the total annual cost if the optimal ordering quantity is used?
a.
154167.6
b.
156493.7
c.
152744
d.
152483.8
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The supplier offers a $1 per unit discount if the order is for 6 months worth of the demand (2,600 units). What is the annual ordering cost in this case?
a.
94.0
b.
2600
c.
423.0
d.
188.0
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What is the total annual cost with the discount?
a.
171788.0
b.
174908
c.
166068.0
d.
160348.0

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