Sales per year 10,400 cd's
She buys from supplier >= 1000 at $4.45 ea CD
She buys from supplier <=1000 at $4.50 ea CD
Delivery Charge from her supplier is $10/shipment regardless of size
She pays Finance Rate annual interest rate 15%
She pays NYS Property Tax 5% on Annual Inv Value
She pays Insurance Charges 0.02 for every dollar of inventory
She Buys from her supplier 200 CD's/Week
How much does inv management cost her?
Best small order inventory plan?
how big are her orders?
how much does it cost her?
How much does she save?
Sales per year 10,400
Quantity Price per unit
Less than 1,000 $4.45
More than 1,000 $4.50
Delivery charge per shipment $10
Finance rate 15%
Property tax 5% of invetory value
Insurance charges 0.02 for every dollar of inventory
Order size 200
Number of orders per year ...
A sample solution to an inventory management problem. Linear optimization and inventory management is examined.