Question

A sporting goods store sells 150 pool tables per year. It costs$8 to store one pool table for a year. To reorder, there is a fixed cost of $24 per shipment plus $20 for each pool table. How many times per year should the store order pool tables, and in what lot size, in order to minimize inventory costs?

Answer 1

Answer:

1 answer

To reorder, there is a fixed cost of $24 per shipment plus $20 for each pool table. How many times per year should the

Answer 2

Answer:

Explanation:

T = No. of deliveries

P = No. of tables in each delivery

44 t + 8 p = inventory cost

TP= 150

t= 150 /p

44(150 /P ) + 8p = inventory cost

6600 /p + 8p

6600 + 8p ^2 /p = 0

6000 +8p ^2 = p

6008 = p