Please solve it in Excel with showing calculation 4. Target purchases home goods
ID: 337414 • Letter: P
Question
Please solve it in Excel with showing calculation
4. Target purchases home goods made by a supplier in China. Target's stores in the United States sell 200,000 units of home goods each month. Each unit costs $10 and the com- pany has an annual holding cost of 20 percent. Placing a replenishment order incurs clerical costs of $500/order. The shipping company charges $5,000 as a fixed cost per ship- ment along with a variable cost of $0.10 per unit shipped. What is the optimal order size for Target? What is the annual holding cost of the optimal policy? How many orders per year does Target place? What is the annual fixed transporta- tion cost? What is the annual variable transportation cost? What is the annual clerical cost?Explanation / Answer
Please solve it in Excel with showing calculation
4. Target purchases home goods made by a supplier in China. Target's stores in the United States sell 200,000 units of home goods each month. Each unit costs $10 and the com- pany has an annual holding cost of 20 percent. Placing a replenishment order incurs clerical costs of $500/order. The shipping company charges $5,000 as a fixed cost per ship- ment along with a variable cost of $0.10 per unit shipped. What is the optimal order size for Target? What is the annual holding cost of the optimal policy? How many orders per year does Target place? What is the annual fixed transporta- tion cost? What is the annual variable transportation cost? What is the annual clerical cost?