(Solved):
Question 2: A company stocks the following 6 products, where d is annual dema ...
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Question 2: A company stocks the following 6 products, where d is annual demand (assumed to be a constant rate), v is the item's value, and Q is the replenishment order size they are currently using. You do not know the ordering or holding costs. 1. Develop an exchange curve of optimal policies that shows the total number of orders per year (N) versus the total average cycle stock (TACS, in \$). 2. Plot the company's current operating position on the graph. 3. Find the optimal ordering policy (e.g. the Q?) for each item if the firm has declared that it wants to hold the total average cycle stock to $6,000. 4. For your answer in part c, how many orders per year will there be?