Assignment:
Referring to problem 2, again, suppose the box supplier is located close to the manufacturer's plant. For any quantity ordered from the manufacturer, the supplier fills it by making daily deliveries of up to 200 boxes per day, for as many days as it takes to fill the order. Both the supplier and the manufacturer use a 5-day workweek.
1. What are the economic order quantity and the annual order and carrying cost?
2. What is the manufacturer's annual savings in carrying cost by using this system instead of the one in problem 2?
3. What is the average time, in weeks, between orders?
4. Suppose the manufacturer places orders at 2-week intervals. What should the order quantity be? How many days will it take the supplier to fill the order?