Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,500 rolls. The cost per roll is $800, and the annual holding
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,500 rolls. The cost per roll is $800, and the annual holding cost is 15 percent of the cost. Each order costs $50 to process. a. How many rolls should Yellow Press, Inc., order at a time? b. What is the time between orders? Babble, Inc., buys 400 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is $12.50. Holding cost is $0.12 per cassette per year. a. How many tapes should Babble, Inc., order at a time? b. What is the time between orders? At Dot Com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received 5 working days after an order has been placed. No backordering is allowed. Assume 300 working days a year. a. What is Dot Com's optimal order quantity? b. What is the optimal number of orders per year? c. What is the optimal interval (in working days) between orders? d. What is demand during the lead time? e. What is the reorder point? f. What is the inventory position immediately after an order has been placed
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