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A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $ 8 . 2 0 per stone for
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $ per stone for quantities of stones or more, $ per stone for orders of to stones, and $ per stone for lesser quantities. The jewelry firm operates days per year. Usage rate is stones per day, and ordering costs are $
a If carrying costs are $ per year for each stone, find the order quantity that will minimize total annual cost.
b If annual carrying costs are percent of unit cost, what is the optimal order size?
c If lead time is working days, at what point should the company reorder?
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