What is the optimal order quantity

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Reference no: EM131799478

Question: Omar Haaris receives 5000 tripods annually from top grade supplier to meet his annual demand.Omar runs a large photographic outlet and the tripods are used primarily with 35mm camera.The ordering cost is $15 per order and the carrying cost is $0.50 per unit per year.Weekly demand is 100 tripods

a) What is the optimal order quantity

b) Top grade is offering a new shipping options when an order is placed.Top grade will ship one third of the order every week foe three weeks instead of shipping the entire order at once.What is the order quantity if O mar chooses this option? To simplify your calculation,assume that the average inventory is equal to one-half of the maximum inventory level for top grade's new position

c) Suppose top grade suppliers offers to ship one-fifth of ther order every week for five weeks.what is the order quantityunder this option.make the same assumption as in part (b).

d) Calculate the total cost of each option.What do you recommend.

Reference no: EM131799478

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