Determine the optimal number of bolts for the plants

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Reference no: EM13902750

Stainless steel bolts are consumed in a factory at a fairly constant rate of 60 units per week. The bolts cost the factory 2 cents each. It costs the factory $12 dollars to initiate an order. Holding costs are based on an annual interest rate of 25 percent. (a) Determine the optimal number of bolts for the plants to purchase and the times between the placements of orders. (c) What is the optimal cost? (b) What is the yearly holding and setup cost for this item?

Reference no: EM13902750

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