Answered step by step
Verified Expert Solution
Question
1 Approved Answer
show work please. Problem 1: O 4. The Fit Corporation makes two types of widgets that are sold at a retail store. Demand for the
show work please. Problem 1: O 4. The Fit Corporation makes two types of widgets that are sold at a retail store. Demand for the widgets (each week) is as shown below: Demand (units) Widget 1 Widget 2 100 0.2 200 0.3 300 0.5 400 0.1 0.2 0.2 0.2 0.3 Thus Fit faces an average demand of 250 widgets per week for each of the two widgets. The widgets cost $40 per unit to produce. The retail price is $70 per unit. All orders are placed by the retail store at the start of the week and are delivered immediately to the store. If the retail store runs out of stock, Fit purchases a widget from a competitor at a cost of $100 per widget and supplies it to the customer. The customer pays (as before) a price of $70 per widget. Weekly holding cost is 10% of the cost of the widget. Yearly demand for o widgets is 13,000 widgets. 4a. Assume that Fit's retail store places orders once a week. Provide an inventory for each product and associated average inventory level at the store
show work please.
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