West Fraser Timber Co. Ltd. (WFT) is a Canadian forestry company that produces lumber, LVL, MDF,...

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West Fraser Timber Co. Ltd. (WFT) is a Canadian forestry company that produces lumber, LVL, MDF, plywood, pulp, newsprint, and wood chips based in Quesnel BC, Canada. WFT processes 10,000 logs/year and operates 250 days annually. When West Fraser Timber receives an order, its supplier begins delivery at the rate of 60 logs/day. The mill has determined that the ordering cost is $1600/order, and the cost of carrying logs before processing is $15/log/year. Based on the above information, answer the following: a) What should be West Fraser Timber's optimal order size? b) What is the total inventory cost? c) What is the number of operating days between orders? d) What is the number of operating days required to produce an order? West Fraser Timber Co. Ltd. (WFT) is a Canadian forestry company that produces lumber, LVL, MDF, plywood, pulp, newsprint, and wood chips based in Quesnel BC, Canada. WFT processes 10,000 logs/year and operates 250 days annually. When West Fraser Timber receives an order, its supplier begins delivery at the rate of 60 logs/day. The mill has determined that the ordering cost is $1600/order, and the cost of carrying logs before processing is $15/log/year. Based on the above information, answer the following: a) What should be West Fraser Timber's optimal order size? b) What is the total inventory cost? c) What is the number of operating days between orders? d) What is the number of operating days required to produce an order?

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Answers Solution Annual demand D 10000 logs Average d... View the full answer