Questions -
Q1. C&H purchases cases of fertilizer for its lawn-care business from a supplier who charges C&H $40 per order and $50 per case. Each case consists of five bags of fertilizer. C&H needs 2000 bags of fertilizer a year. C&H's annual holding costs are 30%. How many cases of fertilizer should C&H order from its supplier with each order to minimize the total ordering and holding cost?
Q2. C&H purchases cases of fertilizer for its lawn-care business from a supplier who charges C&H $40 per order and $50 per case. Each case consists of five bags of fertilizer. C&H needs 2000 bags of fertilizer a year. C&H's annual holding costs are 30%. Assuming that C&H operates optimally, how many cases does C&H have in inventory on average?
Q3. Let us suppose the demand at a firm is 200 units per month. The firm orders 80 units each time. What is the average inventory level at this firm?
Q4. Vitamins Inc. sells 600 bottles of vitamin C bottles per week for $80 each. The supplier charges them $30 per order and $45 per bottle. The annual holding cost is assumed to be 40%. What order quantity minimizes the company's total ordering and holding cost per year?
Q5. Let us suppose the demand at a firm is 200 units per month. The firm orders 80 units each time. How many times does the firm place an order per year?
Q6. Vitamins Inc. sells 600 bottles of vitamin C bottles per week for $80 each. The supplier charges them $30 per order and $45 per bottle. The annual holding cost is assumed to be 40%. What is the company's total ordering and holding cost per year?
Q7. Bamazon Inc's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Bamazon Inc. incurs a 25% annual holding cost. What is its annual total cost (which includes the purchasing cost, ordering cost, and holding cost) the firm incurs, assuming they operate optimally?
Q8. A firm's annual demand for a product is 100,000 units. It has a holding cost of $20 per unit per year and an ordering cost of $10 per order. Since the supplier boxes its products into 150 units per box, the firm is required to order an integer multiple of 150 units. What order quantity should it use to minimize ordering and holding costs?
Q9. Bamazon Inc's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Bamazon Inc. incurs a 25% annual holding cost. Assuming the firm operates optimally, how many units should they purchase each time they place an order?
Q10. A firm's annual demand for a product is 100,000 units. It has a holding cost of $20 per unit per year and an ordering cost of $10 per order. Since the supplier boxes its products into 150 units per box, the firm is required to order an integer multiple of 150 units. Suppose the firm orders the quantity that adheres to the supplier's integer multiple requirements, what is the cost they incur?