Find optimal order quantity per order

Assignment Help Finance Basics

Reference no: EM13301525

AV City stocks and sells a particular brand of laptop. It costs the firm $625 each time it places an order with the manufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500 units, with a constant demand rate throughout the year. Orders are received within minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day. Determine the following:

• a.Optimal order quantity per order
• b.Minimum total annual inventory costs
• c.The number of orders per year
• d.The time between orders (in working days)

Reference no: EM13301525

Questions Cloud

What are the two elements : A circuit contains two elements, but it is not known if they are L, R or C. The current in this circuit when connected to a 137 V, What are the two elements

Assume that the economy starts in the long-run equilibrium : Using the AA-DD framework and assuming the flexible exchange rate regime, analyse how a permanent change in tastes of domestic consumers making them to prefer domestic goods over foreign goods,would affect domestic economy

Determine the optimal number of yards of material sofaworld : Determine the optimal number of yards of material Sofaworld should order, the minimum total inventory cost, the optimal number of orders per year, and the optimal time between orders.

Define the rate constant for the second order reaction : The rate constant for the second order reaction 2NO2 ???&??; N2O4 is 2.79 L/mol •min at 48 oC. If the initial concentration of NO2 is 1.05 M , what is the half-life

Find optimal order quantity per order : The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day.

Determine the resistance of the resistor in this circuit : A generator is connected to a resistor and a 0.032-H inductor in series. Determine the resistance of the resistor in this circuit

Explain the balanced chemical equation for the reaction : What is the balanced chemical equation for the reaction used to calculate Delta H f of SrCO3(s) ? If fractional coefficients are required, enter them as a fraction

Determine the consequences of this transaction : Your firm is cash-based. Ignore any income tax implications. Determine the consequences of this transaction for each of the following.

Explain the combustion of ethene c2h4 occurs : The combustion of ethene, C2H4 , occurs via the reaction C2H4 (g) + 3O2(g) ===> 2CO2(g) + 2H2O(g) with heat of formation values given by the following table

User Account

All Pages