Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A California distributor of sporting equipment expects to sell 9,000 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs

image text in transcribed

image text in transcribed
A California distributor of sporting equipment expects to sell 9,000 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $50. (a) Find the inventory cost incurred if the distributor orders 250 cases at a time during the year. (b) Determine the economic order quantity, that is, the order quantity that minimizes the inventory cost. Let x be the number of cases per order and r the number of orders placed per year. if C represents the inventory cost, then the objective equation is C = Br + [:lx. The constraint equation is rx = D. (Do not include the $ symbol in your answer). (a) The inventory cost is $D. (Simplify your answer.) (b) The economic order quantity is El cases. (Simplify your answer.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Mathematical Logic Foundations For Information Science

Authors: Wei Li

2nd Edition

3034808623, 9783034808620

More Books

Students also viewed these Mathematics questions

Question

2. It is the results achieved that are important.

Answered: 1 week ago