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 Algo
Demand for a book at
Amazon.com is units per week. The product is supplied to the retailer from a factory. The factory pays $
per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is is given by
Shipment cost $
Assume the annual inventory carrying cost is percent.
a What is Amazon's total cost per shipment?
Cost per shipment
a What is the annual holding cost per book? Round your answer to decimal places.
Annual holding cost
per book
b What is the optimal shipment size? Assuming 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 decimal places.
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