Question: pring Enabled: Final Exam ( 4 5 politis: 1 5 questions, 5 . A jewelry firm buys semiprecious stones to make bracelets and rings. The

pring Enabled: Final Exam (45 politis: 15 questions, 5.
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $e10 per stione for quantities of 600 stones or more, $8.50 per stone for orders of 400 to 599 stones, and $9.00 per stone for liesser quantities. The jeveliny firm operates 160 days per year. Usage rate is 18 stones per day, and ordering costs are $38.
a. If carrying costs are $1 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.)
Optimal order quantity
stones
b. If annual carrying costs are 15 percent of unit cost, what is the optimal ofder size? (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.)
Optimal order quantity
stones
c. If lead time is 2 working days, at what point should the company reorder? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Reorder quantity
stones
 pring Enabled: Final Exam (45 politis: 15 questions, 5. A jewelry

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!