Question: Problem 11-35 Demand for a book at Amazon.com is 385 units per week. The product is supplied to Amazon from a factory. The factory charges
Problem 11-35
Demand for a book at Amazon.com is 385 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $9 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 = $95 + 2Q
Assume the annual inventory carrying cost is 31 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 |
PLEASE HELP ME FAST IN OPMA. THANK YOU
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