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M . Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an
M Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the
components has an annual demand of units, and this is constant throughout the year. Carrying cost is estimated to be $ per unit per year, and the
ordering setup cost is $ per order.
a To minimize cost, how many units should be ordered each time an order is placed?
units round your response to two decimal places
b How many orders per year are needed with the optimal policy?
orders round your response to two decimal places
c What is the average inventory if costs are minimized? units round your response to two decimal places
d Suppose that the ordering setup cost is not $ and Cotteleer has been ordering units each time an order is placed. For this order policy of to
be optimal, the ordering setup cost would have to be $ round your response to two decimal places
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