Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One week has passed since the demand changed, and your inventory dropped to zero. You ordered 1000 packs to replace all of your inventory. Then
One week has passed since the demand changed, and your inventory dropped to zero. You ordered 1000 packs to replace all of your inventory. Then you realize that you have to limit the sells to only one of these packs per person to lower the demand, and maintain selling 1000 of these packs per week. Of course the holding cost drops because the items are selling too fast, and for the following week that calculations gives 25 cents for holding one item per week. The cost of placing one order remains the same ($30).
What should the frequency of your orders be to minimize cost? In what quantity should you order products? What happened to the above two answers by the effect of lowering the holding cost because of an increasing demand? Write in your own words (looking at the equation of the derivative of the Wilson's lot formula) how the change in the constant h affects the minimization? Write in your own works (looking at the equation of the derivative of the Wilson's lot formula) how the change in the constant m affects the minimization? What would happen if you made the cost of placing one order lower. Maybe you negotiated the cost of transportation due to the increase of orders. . Give at least one idea on how would you, as the manager, lower the cost of placing one order? You don't have to google this, just think what would you do. What should the frequency of your orders be to minimize cost? In what quantity should you order products? What happened to the above two answers by the effect of lowering the holding cost because of an increasing demand? Write in your own words (looking at the equation of the derivative of the Wilson's lot formula) how the change in the constant h affects the minimization? Write in your own works (looking at the equation of the derivative of the Wilson's lot formula) how the change in the constant m affects the minimization? What would happen if you made the cost of placing one order lower. Maybe you negotiated the cost of transportation due to the increase of orders. . Give at least one idea on how would you, as the manager, lower the cost of placing one order? You don't have to google this, just think what would you do What should the frequency of your orders be to minimize cost?
In what quantity should you order products?
What happened to the above two answers by the effect of lowering the holding cost because of an increasing demand?
How does the change in the constant h affect the minimization?
How does the change in the constant m affect the minimization?
How would you, as the manager, lower the cost of placing one order?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started