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The annual demand for mosquito netting is 944. For our calculations, assume demand is relatively constant throughout the year. It costs WalBlues $10 every time
- The annual demand for mosquito netting is 944. For our calculations, assume demand is relatively constant throughout the year.
- It costs WalBlues $10 every time a resupply order of mosquito netting is placed (i.e. cost in time and money to place the order).
- The cost of carrying a single unit of mosquito netting in the store is estimated at $1 per year.
Based on that information, I am looking for your help to advise WalBlues on making some detailed computations in a single file Cost Sensitivity Spreadsheet that includes the charts requested and the meaning of each.
The file should both show the relationship between order quantity and total cost (i.e. order cost + carrying cost) and include optimal recommendations for the following:
- The number of mosquito netting units WalBlues should order from MedProducts at a time, that is, per single order.
- The number of separate orders per year that WalBlues should place for mosquito netting units.
- The average inventory of mosquito netting that WalBlues should maintain.
- The annual ordering cost for netting.
- The annual holding cost for netting.
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