Details of this Paper

Mr. Dan Brown, owner of the New England Seafood Store

Description

solution


Question

5. Mr. Dan Brown, owner of the New England Seafood Store, has the only seafood store;in town that carries Maine lobsters. The demand for lobsters has been sufficiently high;to warrant continued air transportation of lobsters from Boston. However, Mr. Brown;cannot order too many lobsters because of the ever-increasing holding costs and;limited salt water tank space. Mr. Brown asked his son-in-law, Jimmy Stuart, a recent;graduate of a-business college, to give him some help in determining die best;inventory policy for lobsters. After looking over past records, Jimmy identified the;following;D = 4,000 lobsters per year;HC == $0.50 per lobster per year;OC = $40 per order (including air freight);LT = 3 days;Store operates 300 days per year;a. Determine the optimal order quantity (Q*) for lobsters;b. Determine the demand rate (DR) per day.

 

Paper#33001 | Written in 18-Jul-2015

Price : $27
SiteLock