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Elanso [62]
2 years ago
6

The Super Discount store (open 24 hours a day, every day) sells 8-packs of paper towels, at the rate of approximately 420 packs

per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $.50. The cost to place an order for more is $20 and it takes four days for an order to arrive.
a. Find the optimal order quantity.
b. What is the reorder point?
c. How often should an order be placed?
Business
1 answer:
BlackZzzverrR [31]2 years ago
3 0

Answer:

a) 2,093

b) It will reorder once there are 420 units left (demand during lead-time)

c) 34 days

Explanation:

a) economic order quantity

Q_{opt} = \sqrt{\frac{2DS}{H}}

<u>Where:</u>

D = annual demand = 21,900

S= setup cost = ordering cost = 50

H= Holding Cost = 0.50

Q_{opt} = \sqrt{\frac{2(21,900)(50)}{0.50}}

EOQ = 2092.844954

b) it takes four days to arrive:

if it sale 420 units per week then:

420 x 4/7 = 240 units are demand during delivery

c) order cycle:

EOQ / Annual Demand

2,093 / 21,900 = 0,09557 x 365 = 34.8333 days

It will order every 34 days (if it orders after 35 days will face shortage)

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Answer:

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f(t) = \frac{0.82}{2}t^2 +1.14 t +C

Where C is a constant, now using the initial condition we got:

f(2)= 5.9 = 0.41 (2)^2 + 1.14*2 +C

And solving for C we got:

C= 5.9 -0.41(4) -1.14*2 = 1.98

And the function desired for the advertising revenue would be given by:

f(t) = 0.41t^2 1.14t +1.98

With f the amount in billions and the the years since 2002 to 2006.

Explanation:

For this case we have the following function who represent the revenue grew rate:

r(t) = 0.82t +1.14 , 0 \leq t \leq 4

And we want to calculate the Advertising revenue so we need to integrate the function r(t) and we can use the inidital condition t=0 , f(2)= 5.9 billion.

If we integrate the function we got:

f(t) = \int 0.82 t +1.14 dt

f(t) = \frac{0.82}{2}t^2 +1.14 t +C

Where C is a constant, now using the initial condition we got:

f(2)= 5.9 = 0.41 (2)^2 + 1.14*2 +C

And solving for C we got:

C= 5.9 -0.41(4) -1.14*2 = 1.98

And the function desired for the advertising revenue would be given by:

f(t) = 0.41t^2 1.14t +1.98

With f the amount in billions and the the years since 2002 to 2006.

5 0
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Answer:

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Once Merkel places the purchase order, it should record the cost of the office equipment. It is usual that companies pay in advance a percentage of the total cost and the rest when the equipment is delivered.

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Answer:

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