Question
At a Best Buy store, the forecast for the annual demand of a Motorola cell phone is 15600. Demand forecasts are updated weekly and the
At a Best Buy store, the forecast for the annual demand of a Motorola cell phone is 15600. Demand forecasts are updated weekly and the unit time is one week. Motorola takes 2 weeks to supply an order and the setup cost is $400 per order. The holding cost rate is 10% and one cell phone costs $50. (Best Buy Part A) (a) How many orders are placed per year? [Answer format: two decimal places] (b) What is the time interval (in years) between orders? [Answer format: one decimal place] (c) What is the time interval (in weeks) between orders? [Answer format: one decimal place] (Note: To avoid rounding errors, use exactly the same reorder interval in (b).) Write your answer(s) as 1.23, 4.5, 6.7
(Best Buy Part B)
(a) What is the total setup cost? [Answer format: two decimal places] (b) What is the total holding cost? [Answer format: integer] (c) What is the total cost? [Answer format: two decimal places] (Note: To avoid rounding errors, use exactly the same order quantity in a previous question.) Write your answer(s) as 1234.56, 7891, 2345.67
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