Reference no: EM133345475
Question 1: A large custom t-shirt embroiderer, Fancy Fab, has consistent demand of 260,000 t-shirts per year. The cost of placing an order to replenish stock is $30, and the annual holding cost is $2.00 per shirt. 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 Fancy Fab'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 the demand during lead time?
e. What is the reorder point?Problem
Question 2: A large custom t-shirt embroiderer, Fancy Fab, has consistent demand of 260,000 t-shirts per year. The cost of placing an order to replenish stock is $30, and the annual holding cost is $2.00 per shirt. 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 Fancy Fab'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 the demand during lead time?
e. What is the reorder point?