Question

2. win Lee has determined that the annual demand for number 6 screws is 100,000 screws. Irwin, who works in his brother's hardware store, is in charge of purchasing. He estimates that it costs $10 every time an order is placed. This cost includes his wages, the cost of the forms used in placing the order, and so on. Furthermore, he estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. (a) How many number 6 screws should Mr. Lee order at a time (b) What is the optimal number of orders per year? (c) What is the total annual inventory cost? (d) What is the optimal number of days between orders?

Answer 1

(0) 0 : ГРА annual Demand & Ordering cost pen onde Qx 100000 x 1000000 Scruws 0.005 W Castung cost poronit perannum Number of coders 10000 = 5 onders Inventory cost- orderung cast & cassung cas = 5x10 + 20000 x0.003 =.50 +100 = $150 optimum number of Day between onders 365 - 7 Days sonders