Question

A bookstore expects to sell 120 120 calculus textbooks during the next year. It costs $1.65 to store one calculus textbook for one year. To reorder, there is a fixed cost of $11 , plus $1.50 for each calculus textbook ordered. In what lot size and how many times per year should an order be placed to minimize inventory costs?

Answer #1

A bookstore expects to sell 400 calculus textbooks during the
next year. It costs $4 to store one calculus textbook for one
year. To reorder, there is a fixed cost of $12.50, plus $0.50 for
each calculus textbook ordered. In what lot size and how many times
per year should an order be placed to minimize inventory costs?

A jewelry store expects to sell 120 diamond bracelets during the
next year. It costs $2.25 to store one diamond bracelet for one
year. There is a fixed cost of $15 for each order. Find the lot
size and the number of orders per year that will minimize inventory
costs.

A sporting goods store sells
100
pool tables per year. It costs
$50
to store one pool table for a year. To reorder, there is a
fixed cost of
$25
per shipment plus
$18
for each pool table. How many times per year should the store
order pool tables, and in what lot size, in order to minimize
inventory costs?

(ECP)A sporting goods store sells 100 pool tables per year. It
costs $20 to store one pool table for a year. To reorder, there is
a fixed cost of $40 per shipment plus $16 for each pool table. How
many times per year should the store order pool tables, and in what
lot size, in order to minimize inventory costs?

Simpson’s Shoes expects to sell 315 pairs of a certain running
shoe in a year. There is a fixed charge of $140 per order and each
pair of shoes cost the store $7. It costs the store $8 to store a
pair of shoes for a year.
Find the inventory cost as a function of ONLY
the number of shoes/order.
Use methods of Calculus shown recently in class to minimize the
inventory costs. Give appropriate units.
x=____________________________
r=____________________________ Work->
Minimum...

13) A furniture showroom expects to sell 250 sofas a year. Each
sofa costs the $300, and there is a fixed charge of $500 per order.
If it costs $100 to store a sofa for a year. In your asnwer provide
the storgae cost function, reoder cost function, the total cost
fuction, and use these information to answer how large should each
order be and how often should order be placed to minimize inventory
costs?

A company anticipates selling 5500 units of a product at a
uniform rate over the next year. When the company places an order
for x units, it is charged a flat fee of $40. Carrying costs are
$26 per unit per year. How many times should the company reorder
each year and what should be the lot size of each order to minimize
inventory costs? What is the minimum inventory cost?

Bruno Fruscalzo decided to start a small production facility in
Sydney to sell gelato to the local restaurants. His local milk
supplier charges $0.50 per kg of milk plus a $21 delivery fee (the
$21 fee is independent of the amount ordered). Bruno’s holding cost
is $0.03 per kg per month. He needs 9000 kg of milk per month.
Round your answer to 3 digits after the decimal point.
Do NOT use comma in your numeric answers.
Suppose Bruno orders...

Bruno Fruscalzo decided to start a small production facility in
Sydney to sell gelato to the local restaurants. His local milk
supplier charges $0.5 per kg of milk plus a $25 delivery fee (that
is independent of the amount ordered). Bruno’s holding cost is
$0.02 per kg per month. He needs 9750 kgs of milk per month.
a.Suppose Bruno orders 9250 kgs each time. What is his average
inventory (kgs)?
b.Suppose Bruno orders 7000 kgs each time. How many orders...

Mini-Case: You have recently acquired a franchise for Dunkin'
Donuts. You have reviewed the operations of the business carefully,
from marketing to management, from accounting to finance. You have
noticed that the store manager does not have a proper inventory
policy. You want to optimize the amount of coffee that you should
order at one time. The price of coffee is $4.50 per lb and it comes
in 25-lb bags. The price per bag is 4.5*25 = $112.50. The store...

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