Question
Please show all work. Kyle brown has determined that the annual demand for the number 6 screws is 100,000 screws. Kyle who works in his
Please show all work.
Kyle brown has determined that the annual demand for the number 6 screws is 100,000 screws. Kyle who works in his brother's hardware store is in charge of purchasing. He estimates that it costs $10 every time an order is placed. this cost includes his wages, the cost of the forms used in placing the order, and so on. Furthermore, he estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent.
a. how many numbers 6 screws should Kyle order at a time?
b. What is the optimal number of orders per year?
c. What is the total annual inventory cost?
D. What is the optimal number of days between orders?
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