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Demand for Container X - 1 0 0 is 1 0 0 per week. There are 5 2 weeks per year. The lead time to

Demand for Container X-100 is 100 per week. There are 52 weeks per year. The lead time to get new containers is 3 weeks. The interest rate (holding cost rate) is 40%. The cost per order is $96 and the cost per container is $20. One decimal point for all calculations.
What is the optimal ordering quantity?
a.
2600
b.
353.3
c.
499.6
d.
395.0 What is the annual ordering cost if the optimal ordering quantity is used?
a.
999.2
b.
1068
c.
1263.8
d.
1413.0 What is the total annual cost if the optimal ordering quantity is used?
a.
108777.0
b.
105632
c.
106825.9
d.
105413.0 The supplier offers a $1 per unit discount if the order is for 6 months worth of the demand (2,600 units). What is the annual ordering cost in this case?
a.
432.0
b.
2600
c.
96.0
d.
192.0 What is the total annual cost with the discount?
a.
118752
b.
120312.0
c.
114592.0
d.
108872.0

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