Question
You have been given the opportunity to open a new Tesla distribution Centre on the Island to serve Atlantic Canada. The annual demand for Atlantic
You have been given the opportunity to open a new Tesla distribution Centre on the Island to serve Atlantic Canada. The annual demand for Atlantic Canada is forecasted to be 5,200 cars with an order cost of $1,200 and an annual carrying cost of $400 per car. The dealership will be open 310 days a year. (inventory can be rounded up to a whole number and cost to two decimals)
a.) What is the optimal order size?
b.) What is the annual order and carrying cost associated with the optimal order size?
c.) Number of operating days between orders?
d.) Number of Orders per year?
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