Question: Tim Madsen is the purchasing agent for Computer Center, a large discount computer store. He has recently added the hottest new computer, the Power model,

Tim Madsen is the purchasing agent for Computer Center,
a large discount computer store. He has recently added the hottest
new computer, the Power model, to the stores stock of goods. Sales
of this model now are running at about 13 per week. Tim purchases
these computers directly from the manufacturer at a unit cost of
$3,000, where each shipment takes half a week to arrive.
Verify your answer for the optimal order quantity obtained in part (d) by applying the EOQ formula by hand. (f) With the optimal order quantity obtained above, how frequently will orders need to be placed on the average? What should the approximate inventory level be when each order is placed? (g) How much does the optimal inventory policy reduce the total variable inventory cost per year (holding costs plus administrative costs for placing orders) for Power model computers from that for the policy described in part (a)? What is the percentage reduction

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