Question

6-43 Dillard Travey receives 5,000 tripods annually from Quality Suppliers to meet his annu al demand. Dil- lard runs a large photographic outlet, and the tripods are used primarily with 35-mm cameras. The order- ing cost is $15 per order, and the carrying cost is 50 cents per unit per year. Quality is starting a new option for its customers. When an order is placed, Quality will ship one-third of the order every week for three weeks instead of shipping the entire order at one time. Weekly demand over the lead time is 100 tripods.

Answer 1