At Dot Com. a large retailer of popular books, demand is constant at 17.000 book

Question

At Dot Com. a large retailer of popular books, demand is constant at 17.000 books per year. The cost of placing an order to replenish stock is $15. and the annual cost of holding is $6.00 per book. Stock is received 2 working days after an order has been placed. No backordering is allowed. Assume 365 working days a year. Dot Corn's optimal order quantity is books. (Enter your response rounded to the nearest whole number.) The optimal number of orders per year is orders. (Enter your response rounded to the nearest whole number.) The optimal interval (in working days) between orders is days. (Enter your response rounded to one decimal place.) The demand during lead time is books. (Enter your response rounded to the nearest whole number.) The reorder point is books. (Enter your response rounded to the nearest v/hole number.) The inventory position immediately after an order has been placed is books. (Enter your response rounded to the nearest v/hole number.)

Explanation / Answer

Demands in units per year(D)= 17,000 Nos

Cost of placing an order(F)= $15

Carrying cost per unit(C)= $ 6

a) Dot com's optimal ordering quantity(EOQ) = (2FD/C)1/2

= (2 x 17000 x 15/6)1/2

b)

= 292 Nos.

b)

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