Question: For Ibuprofen heath knows that: unit cost: c = 4 0 4 Naira / pack demand: D = 6 8 0 packs / year ordering
For Ibuprofen heath knows that:
unit cost: c Nairapack
demand: D packsyear
ordering cost: A Nairaorder
holding cost: rc Nairapackyear
How many packs of Ibuprofen should Joshua order to minimize the total cost?
Alan runs a second pharmacy on the other side of town. He has been ordering for each location individually from a wholesaler. He realizes that he can save some money by consolidating the two orders into one single order. The costs per pack for both pharmacies are exactly the same use A c and rc values from Part The annual demand for Ibuprofen in the second pharmacy is packs.
What is the consolidated optimal order quantity in packs of Ibuprofen
If Alan places one consolidated order as in Part instead of placing two separate orders, how much money will he save? Round to one decimal place
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