Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 1 2 - 1 4 ( Algo ) A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price
Problem Algo
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $ per stone for quantities of stones or more, $ per stone for orders of to stones, and $ per stone for lesser quantities. The jewelry firm operates days per year. Usage rate is stones per day, and ordering costs are $
a If carrying costs are $ per year for each stone, find the order quantity that will minimize total annual cost. Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number. b If annual carrying costs are percent of unit cost, what is the optimal order size? Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number. c If lead time is working days, at what point should the company reorder? Do not round intermediate calculations. Round your final answer to the nearest whole number.
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