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ACalifornia distributor of sporting equipment expects to sell 2,?00 cases of tennis balls dun'ng the coming year at a steady rate. Yearly carrying costs (to
ACalifornia distributor of sporting equipment expects to sell 2,?00 cases of tennis balls dun'ng 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 $60. (3) Find the inventory cost incurred if the distributor orders 300 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 = r+ x. The constraint equation is rx = . (Do not include the $ symbol In your answer) (a) The inventory cost is $ (Simplify your answer.) (b) The economic order quantity is cases (Simplify your answer.)
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