Reference no: EM132211617

Use the info. about Querty Corp. to solve all 4 parts of the problem.

Qwerty Corp. is about to begin production on two homes in a new housing subdivision. Qwerty Corp. anticipates that it will need 80,000 square feet of lumber over its 450 day construction cycle. Ordering and holding costs are $6/order and $8/sq.ft., respectively. Qwerty Corp.'s turnaround time on a lumber order is 2 days.

Holding costs are not to be determined using days in this equation. I would like to know how to arrive at the correct answer that was given by my professor. Any Chegg experts who are confused, please refer to ¨Total Cost = [F ? (T/Q)] + [H ? (Q/2)]. There is no more information needed. This is not an Operations Management problem.

Round intermediate calculations, but round final answer to 2 decimal places.

Part 1. How many orders should Qwerty Corp. make to minimize inventory costs?

Part 2. At what inventory level should Qwerty Corp. order lumber if the company wants to minimize inventory costs?

Part 3. What is the total cost per inventory order for Qwerty Corp.?

Part 4. How many units of lumber will Qwerty Corp. have in its inventory at the end of the 3rd day of construction?