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Demand for a book at Amazon.com is 130 units per week. The product is supplied to the retailer from a factory. The factory pays $8
Demand for a book at Amazon.com is 130 units per week. The product is supplied to the retailer from a factory. The factory pays $8 per unit, while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by Shipment cost = $47 + 2Q Assume the annual inventory carrying cost is 10 percent. What is the cost per shipment? What is the annual holding cost per book? What is the optimal shipment size? What is the average throughput time
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