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-2015Price : $27