Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Demand for a book at Amazon.com is 310 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10

Demand for a book at Amazon.com is 310 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $70 + 2Q Assume the annual inventory carrying cost is 25 percent. a-a-1. What is Amazon's total cost per shipment? Cost per shipment + Q

a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost $ per book

b. What is the optimal shipment size? (Assuming 52 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size books

c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Average throughput time months

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Proofing Your Return

Authors: Jr. Wade, Jack Warren

1st Edition

002622240X, 978-0026222402

More Books

Students also viewed these Accounting questions

Question

dy dx Find the derivative of the function y=(4x+3)5(2x+1)2.

Answered: 1 week ago