CALCULUS+ITS APPLICATIONS
CALCULUS+ITS APPLICATIONS
12th Edition
ISBN: 9780135164884
Author: BITTINGER
Publisher: PEARSON
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Chapter CR, Problem 35CR
To determine

To find: The lot size and minimum number of re-orders to minimize inventory cost of headphones.

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A furniture store expects to sell 120 coffee tables during the next year. It costs $1.50 to store one coffee table for one year. To reorder, there is a fixed cost of $10, plus $2.80 for each coffee table ordered. In what lot size and how many times per year should an order be placed to minimize inventory costs? coffee tables per order orders per year
charge 8. A wine warehouse expects to sell 30,000 bottles of wine each year. Each bottle costs $9, plus a fixed of $200 per order. If it costs $3 to store a bottle for a year, how many bottles should be ordered at a time and how many orders should the warehouse place in a year to minimize inventory costs?
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