inventory managment: Incremental cost

20.2011 Vista protegida - Guardado en Este PC ALAN LIA seo Dispozici Referencias Vista correspondencia Revisar [1000, 0 ) Ayuda $11 Find 1. (25 pls.) Optimal lot size that minimizes total cost Problem 2 The Bike Company has a special line of mountain bikes. They have just been "tipped" that the handlebars (a per-bike component) is about to increase its price. The information regarding the special line of mountain bikes is the following: Annual de mand - 15000 units Ordering cost = $1200 Carrying rate per dollar-year of inventory is 0.20 Current price of handlebars - $600 New price of handlebars - $700 Space required to store a bike - 1 cubic meter Space required to store a handlebars - 0.25 cubic meter Find: 2. (10 pts.) Optimal lot size (Q") that maximizes savings 3. (10 pts) Compute the range of Q that yields positive savings 4. (15 pts) Once acquired the handlebars they must be stocked in a warehouse that has an available space of 200 m3. How many units should the company order without violating this constraint? 5 (15 pts. Consider that the company has a budget of $10,000, how many units should the company order without violating this constraint