Total annual ordering cost__________?Total annual inventory carrying cost __________? Let's return to the class example. My cleaning company uses 12,000 rolls of paper towels annually. I pay 30per order in ordering cost. Annual per-roll inventory carrying cost is 10% of the unit cost. Each roll costs $2;thus, the annual per-roll inventory carrying cost is S.20. IfI place an order for 1,000 rolls each month, the totalannual ordering cost and inventory carrying cost is $172. Assume 360 days per year.I can get a discount of a nickel per roll if I order 2,000 rolls at a time. Under this option, what isthe annual ordering cost and annual inventory carrying cost? SHOW ALL WORK, else NO CREDIT.

Answered: I can get a discount of a nickel per…

I can get a discount of a nickel per roll if I order 2,000 rolls at a time. Under this option, what is the annual ordering cost and annual inventory carrying cost? SHOW ALL WORK, else NO CREDIT.

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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Dunstreet’s Department Store would like to develop an inventory ordering policy with a 95 percent probability of not sticking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. The demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. The standard deviation of demand for the sheets is 5 per day. There are currently 150 sheets on-hand.How many sheets should you order?
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