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Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Each unit costs $160. Ray has estimated the annual demand for this model at 1000 units. His cost to carry one unit is 5% of the product cost per month per unit. He has estimated that each order costs $500 to place. Answer the following questions. (Keep 2 decimal places for non-integer results)
1. What is the holding cost (in dollars) per unit per year?
2. If the company orders 200 units each time, what is the cycle time (in months)? What is the order frequency (how many cycles per year)? What is the annual inventory holding cost? What is the annual inventory ordering cost?
3. If the company orders every other month, what is the cycle time and what is the order quantity?
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Brittany currently attends college and runs her new business, Pampered Pets, a sole proprietorship she created in her sophomore year. Since Brittany is a student, she does not have much capital and seeks to save money where she can.
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You are preparing for a scoping meeting with the project stakeholders and other key subject-matter experts. During this meeting, you will review the detailed requirements and identify any remaining open areas. You will also review the scope manage..
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