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Company A:
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An electronic retail
chain wishes to minimize its ordering costs for a particularly popular model
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of laptop computer. This retail chain has a line of credit to
finance its inventory and the current
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holding rate is
5.5%. The chain estimates it can sell
670,000 units per year and it pays $375 dollars
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per unit. It costs $32 dollars to place each
order. How many units should it order
each time?
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You should round your
answer up to the nearest laptop unit.
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Company B:
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A manufacturer of laptop
computers operates a plant with an annual capacity of 148,070,000
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laptop units. One of its models is expected to sell
8,710,000 units in the coming year.
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How large should each
product lot be if it costs $375 to change production from one model to
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another. Assume that the manufacturer values each
laptop unit at $190 dollars and it has a
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holding rate of
6.5%. You should round your answer up
to the nearest laptop unit.
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Wednesday 22 January 2014
Linear Systems
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