Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) (20pts) A pharmacy sells three types of syrups. Demand and cost data are summarized as: Syrup-3 65 Syrup-1 110 2.0 2.4 600 Order cost

image text in transcribed
2) (20pts) A pharmacy sells three types of syrups. Demand and cost data are summarized as: Syrup-3 65 Syrup-1 110 2.0 2.4 600 Order cost (liras per order) Purchasing cost (liras per bottle) Holding cost (liras per bottle per year) Annual demand (bottles per year) Syrup-2 80 4.0 2.6 900 3.0 2.5 800 What should be the optimal order quantities for each type of syrup if there is a budget limitation of 1400 liras which can be used for inventory-on-hand at any given time. What will be the annual cost for this optimal solution. 3) (20pts) Reconsider the problem in Q.2. Suppose that there is no budget limitation for the inventory, but the storage space can take at most 400 bottles at any time (assuming that all bottles for different syrups are identical). What will be the optimal order quantities in this case

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions