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A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges ( $ 8 6 ) per stone, annual
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $ per stone, annual carrying costs are and the cost of processing orders is $ The jewelry firm operates days per year and their usage rate is stones per day. How many orders per year will be placed for semiprecious stones?Problem Algo
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. Do not round
intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final
answer to the nearest whole number.
Optimal order quantity : stones
b If annual carrying costs are percent of unit cost, what is the optimal order size? Do not round intermediate calculations, except
for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole
number.
Optimal order quantity
stones
c If lead time is working days, at what point should the company reorder? Do not round intermediate calculations. Round your
final answer to the nearest whole number.
Reorder quantity
stones
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