Question
Bakari Smith has determined that the annual demand for number 6 screws is 50,000 screws. Bakari, who works in his brothers hardware store, is in
Bakari Smith has determined that the annual demand for number 6 screws is 50,000 screws. Bakari, who works in his brothers hardware store, is in charge of purchasing. He estimates that it costs $10 every time an order is placed. This cost includes his wages, the cost of the forms used in placing the order, and so on. Furthermore, he estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent? (a) How many numbers 6 screws should Bakari order at a time (b) What is the optimal number of orders per year? (c) What is the total annual inventory cost? (d) What is the optimal number of days between orders? (e) Describe the major decisions that must be made in inventory control NOTE: SHOW
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