Table Demand , Dt = Monthly demand * 12 =12*12000 | 144000 | Demand, Laptop, DL = 5000*12 | 60000 |
Price | $ 100.00 | Price | $ 400.00 |
Holding cost , Ht | $ 25.00 | Holding cost , Hl | $ 100.00 |
(25% of price) | (25% of price) | ||
New Shipping cost, S = | $ 10,000.00 | ||
Part a) Optimal joint order frequency, N | |||
n* = SQRT((DtHt + DlHl)/(2S*)) | |||
DtHt + DlHl = 144000*25+60000*1000 | 9600000 | ||
2S | 20000 | ||
n*= sqrt (9600000/20000) | 21.91 | ||
Part b) Order Quantity for Tablet , Qt = Dt/n* = 144000/21.91 | 6572.34 | Order Quantity for B, Ql = Dl/n*= 60000/21.91 | 2738.48 |
Part c) Inventory cost for tablet = (Q/2*Ht) = (6572.34/2)*25 | $ 82,154.25 | Inventory cost = (Ql*Hl)/2 =(2738.48/2*100) | $ 136,924.0 |
Total inventory cost current strategy = 82154.12+136924 | $ 219,078.25 | ||
Annual ordering cost = 21.91*10000 | $ 219,100.00 | ||
Total Cost = Total inventory cost + Annual ordering cost | $ 438,178.25 |
23. (10 points) An electronics store sells tablets and laptops that are currently supplied by two...
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