Question: QUESTION 3 Q 1 ) Johnson Electronics sells electrical and electronic components through catalogs printed annually. Each printing run incurs a fixed cost of $

QUESTION 3
Q1) Johnson Electronics sells electrical and electronic components through catalogs printed annually. Each printing run incurs a fixed cost of $5,000, which involves catalog design cost and printing setup cost. The variable production cost is $5 per catalog. Annual demand for catalogs is estimated to be uniformly distributed between 12,000 and 20,000. Data indicate that, on average, each customer pays $35 for a catalog. (the same as for the previous question)
c) Finally, suppose that the deal with the recycling company is over, but JE signs an agreement with the printing company so that, if they run out of catalogs, they can do "just-in-time" printing and delivery at a cost of $15 per catalog. What is the optimal ordering quantity?
[Round up your answer to the nearest integer value. 0.9. both 2.2 and 2.6 should be rounded up to 3.][Enter the numerical value without commas]
 QUESTION 3 Q1) Johnson Electronics sells electrical and electronic components through

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!