What is the optimal number of orders per year

Assignment Help Operation Management

Reference no: EM132289317

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?

Reference no: EM132289317

Questions Cloud

Define monetary value and cultural value of work : Define “Monetary Value” and “Cultural value” of a work of art and describe how they apply to an object

Experiencing renewed growth as transportation source : Why are motor coaches experiencing renewed growth as a transportation source?

What needs to be true about strategic alliance : What is a strategic alliance? What needs to be true about a strategic alliance?

What are the major modes of transportation : What are the major modes of transportation, and why is each of these modes important to the current and future success of the tourism industry?

What is the optimal number of orders per year : What is Dot Com’s optimal order quantity? What is the optimal number of orders per year?

Labor relations are broadly characterized by adversarialism : Many argue that U.S. labor relations are broadly characterized by adversarialism. In what ways is adversarialism the result of U.S. labor law?

Types of complexity that are affecting logistics activities : What are some types of complexity that are affecting logistics activities in a firm?

Proposal concerning problem in your workplace or community : Your decision-maker requesting permission to move forward with your researched proposal concerning a problem in your workplace or community.

About the chinese labor relations system : Describe what a non-Chinese manager working for a U.S. company in China should know about the Chinese labor relations system.

User Account

All Pages