MiniMe imports dolls. The annual demand for dolls is 9 0 , 0 0 0 units, &
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Question:
MiniMe imports dolls. The annual demand for dolls is
units, & they are sold at a constant rate throughout the year. The wholesale price
of doll is $ The annual holding cost is of the purchase cost. For each
order of dolls, there is a $ charge for clearing customs and shipping.
A
What is the total monthly cost if you place exactly one order every month to satisfy your demand
setup holding purchase
B
How many dolls should be ordered each time you place an order to minimize your total cost?
C
How many times a year will you place an order when you order in the quantity that minimizes your
total costs? Use your answer from part b to generate an answer for part c
D
What is the annual total cost setup holding purchase if you order in the quantity that minimizes
your total costs? Use your work from part b again.
E
How will your order quantity change if the custom clearing cost increases? Explain your answer.
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