Question: Problem 2 0 - 3 5 ( Algo ) Demand for a book at Amazon is 2 0 5 units per week ( assume 5
Problem Algo
Demand for a book at Amazon is units per week assume weeks per year
The book is supplied to Amazon from the book publisher for $ per book plus the
cost of shipping the order. The shipping cost has a fixed cost of $ per order and
a variable cost of $ per book shipped. So the cost of the books is $ per book,
plus $ times the number of orders placed.
Assume the annual inventory carrying cost is percent.
a What is the annual holding cost per book?
Note: Round your answer to decimal places.
Answer is complete and correct.
b What is the optimal shipment size?
Note: Assume 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
decimal places.
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