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a. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder? b. What are the estimated annual inventory holding and ordering costs associated with this product? c. How many orders will be placed per year? d. With 250 working days per year, what is the cycle time for this product?

a. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder? b. What are the estimated annual inventory holding and ordering costs associated with this product? c. How many orders will be placed per year? d. With 250 working days per year, what is the cycle time for this product?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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a. If demand for the new videotape recorder is expected to be constant with a rate
of 20 units per month, what is the recommended order quantity for the videotape
recorder?


b. What are the estimated annual inventory holding and ordering costs associated
with this product?


c. How many orders will be placed per year?


d. With 250 working days per year, what is the cycle time for this product?

Tele-Reco Tele-Reco is a new specialty store that sells television sets, videotape recorders, video games, and other television-related products. A new Japanese-manufactured videotape recorder costs Tele-Reco $600 per unit. Tele-Reco's annual holding cost rate is 22%. Ordering costs are estimated to be $70 per order. a. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder? b. What are the estimated annual inventory holding and ordering costs associated with this product? c. How many orders will be placed per year? d. With 250 working days per year, what is the cycle time for this product?
Transcribed Image Text:Tele-Reco Tele-Reco is a new specialty store that sells television sets, videotape recorders, video games, and other television-related products. A new Japanese-manufactured videotape recorder costs Tele-Reco $600 per unit. Tele-Reco's annual holding cost rate is 22%. Ordering costs are estimated to be $70 per order. a. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder? b. What are the estimated annual inventory holding and ordering costs associated with this product? c. How many orders will be placed per year? d. With 250 working days per year, what is the cycle time for this product?
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