Question: Problem 2 0 - 3 5 ( Algo ) Demand for a book at Amazon is 2 0 5 units per week ( assume 5

Problem 20-35(Algo)
Demand for a book at Amazon is 205 units per week (assume 52 weeks per year).
The book is supplied to Amazon from the book publisher for $8 per book plus the
cost of shipping the order. The shipping cost has a fixed cost of $55 per order and
a variable cost of $2 per book shipped. So, the cost of the books is $10 per book,
plus $55 times the number of orders placed.
Assume the annual inventory carrying cost is 16 percent.
a. What is the annual holding cost per book?
Note: Round your answer to 2 decimal places.
Answer is complete and correct.
b. What is the optimal shipment size?
Note: Assume 52 weeks per year. Round your answer to the nearest whole
number.
Answer is complete but not entirely correct.
c. What is the average throughput time?
Note: Do not round intermediate calculations. Round your answer to 3
decimal places.
 Problem 20-35(Algo) Demand for a book at Amazon is 205 units

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