Everett Manns Dream Store sells waterbeds and supplies. The best-selling bed in the store has an annual

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Everett Mann’s Dream Store sells waterbeds and supplies. The best-selling bed in the store has an annual demand of 400 units. The ordering cost is $40, while the holding cost is $5 per unit per year. There are 250 working days per year, and the lead-time is 6 days. To minimize total cost, how many units should be ordered each time an order is placed? If the holding cost per unit was $6 instead of $5, what would the optimal order quantity be?

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Quantitative Analysis For Management

ISBN: 9781292217659

13th Global Edition

Authors: Barry Render, Ralph M. Stair, Michael Hanna, Trevor Hale

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