Question: Problem 2 0 - 3 5 ( Algo ) Demand for a book at Amazon.com is 3 7 0 units per week. The product is

Problem 20-35(Algo)
Demand for a book at
Amazon.com is 370 units per week. The product is supplied to the retailer from a factory. The factory pays $9
per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by
Shipment cost =$90+2Q
Assume the annual inventory carrying cost is 30 percent.
a-1. What is Amazon's total cost per shipment?
Cost per shipment
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.)
 Problem 20-35(Algo) Demand for a book at Amazon.com is 370 units

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