Your company imports decorative planters from Italy. Weekly demand is 1,500 units on average, with a standard deviation of 800. Each planter costs you $10, and the holding cost per year is 25%. You are using a distribution center in Arizona, and fixed transportation costs from Italy is $10,000 per order. Consider a 52-week/year operations. What is the optimal order quantity

Optimal order quantity = 24,980(Approx)

Explanation:

Given:

Weekly demand = 1,500 units

Standard deviation = 800 units

Each planter cost = $10

Holding cost = 25%

Transportation cost = $10,000 per order

Total weeks = 52

Computation of optimal order quantity:

Optimal order quantity =

Where, D = Weekly demand × Total weeks

D = 1,500 units × 52 = 78,000

S = $10,000

h = $10 × 25% = $2.5

Optimal order quantity =

Optimal order quantity = 24,979.992

Optimal order quantity = 24,980(Approx)

going on the gulag might you to find a better answer for that problem

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.