Mr. X is considering starting a new business of selling hoodies with college-logos. The annual demand is 1000. Assume that demand is perfectly steady throughout time. Mr. X can purchase the hoodies from supplier Mr. Y for a price of $40 per hoodie and a $2000 fixed cost for every order placed independent of the order size. The annual holding cost for each hoodie is 50% of its wholesale price. What is the optimal order size (round up to the closest integer)?
Following the previous question, If the lead time is 1 week, what is the reorder point? (Assume there are 50 weeks per year)
Given you answer for Mr. X's optimal order size (in integer) and zero lead time, what is Mr. X’s fixed cost of placing orders per year (round up to the closest integer)?
Given you answer for Mr. X's optimal order size (in integer) and zero lead time, what is Mr. X’s holding cost per year (zero decimal point)?