Question: Question 6 , 7 , 8 , 9 and 1 0 are about the following problem ( similar to the one in my video lecture
Question and are about the following problem similar to the one in my video lecture
Clarissa Seager is the purchasing agent for Central Valve Company, which sells industrial valves and fluidcontrol devices. One of its most popular valves is the Western, which has an annual demand of units. The cost of each valve is $ and the inventory carrying cost is estimated to be of the cost of each valve. Clarissa has made a study of the costs involved in placing an order for any of the valves that Central Valve stocks, and she has concluded that the average ordering cost is $ per order. Furthermore, it takes about work days for an order to arrive from the supplier. During this time, the demand per week work days for Central's valves is approximately Assume there are work days per year.
What is the optimal number of orders per year? Round the number up to the nearest unit
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