Computing the cost of storage space

Reference no: EM131801415

Qusetion: Wilson's lot size formula in economics, the most economical quantity Q of goods (TVs, dresses, gallons of paint, etc.) for a store to order is given by Wilson's lot size formula

Q = f(K, M, h) = √(2KM/h)

where K is the cost of placing the order, M is the number of items sold per week, and h is the weekly holding cost for each item (the cost of storage space, utilities, taxes, security, etc.). Find f(200, 625, 1) and interpret your answer.

Reference no: EM131801415

Questions Cloud

Addresses and solves the management challenge : Write an effective, persuasive memo that directly addresses and solves the management challenge delineated in the scenario.

What characteristics do the cities of minneapolis make good : What characteristics do the cities of Minneapolis, Charlotte, San Diego, and Baltimore possess that make them good markets for introducing premium.

Purchasing an air conditioning unit : You are purchasing an air conditioning unit made in the United States and ins it in a medical device manufacturing facility in Costa Rica.

How much will he have in the account after four years : How much interest will he earn after-tax for the second year of his investment if he withdraws enough cash every year to pay the tax

Computing the cost of storage space : Wilson's lot size formula in economics, the most economical quantity Q of goods (TVs, dresses, gallons of paint, etc.) for a store to order is given by Wilson.

Which advertising objectives are outdoor media most suitable : Which advertising objectives are outdoor media most suitable for?

Specialty advertising and premium advertising : Explain key differences between specialty advertising and premium advertising.

What criteria would you use to select test cities : Tico Taco, a national chain of Mexican fast-food restaurants, has developed the "Super Sonic Taco," which is the largest taco in the market and sells for $1.19.

Finding future value of an investment earning : Investment the future value S of an investment earning 6% compounded continuously is a function of the principal P and the length of time.

User Account

All Pages