The GIIC -Company must determine a policy for ordering coal to operate 15 smelters. Each smelter requires exactly 5 tons of coal per day to operate, and the firm operates 360days per year. The purchasing manager has negotiated a contract to obtain the coal for 5 BD per ton for the coming year. The purchasing manager has determined that theordering cost is 40 BD per order, and the cost of holding coal is 20% per ton of its value.i. Determine the optimal quantity of coal to receive in each order.ii. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the costii. If five days' lead time is required to receive an order of coal, how much coal should be on hand when aniv. Optimal quantity 1837.11 Tons, Total cost 1837.11 BD, Inventory during LT 275 Tonsof the coal).order is placed?i. Optimal quantity 1469.694 Tons, Total cost 1469.694 BD, Inventory during LT 375 Tonsii. Optimal quantity 734.85 Tons, Total cost 1649.694 BD, Inventory during LT 150 Tonsv. Optimal quantity 1649.694 Tons, Total cost 1837.11 BD, Inventory during LT 150 Tonsii. Optimal quantity 1649.694 Tons, Total cost 27000 BD, Inventory during LT 275 Tons

Given- Annual demand (D) = (5 tons×15 smelters×360 days) = 27,000 tons per year Ordering cost (S)…

Answered: The GIIC -Company must determine a…

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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