Henderson Furniture sells reproductions of 18th century furniture. For a particular table, the assumptions of the inventory model with backorders are valid.
D = 200 tables per year
I = 25% per year
C = $800 per table
C_o = $80 per order
C_b = $50 per table per year
The store is open 250 days a year.
a.What are the values for order quantity and number of planned backorders that will minimize total cost?
b.What is the maximum inventory?
c.What is the cycle time?
d.What is total cost?

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The Answer of Henderson Furniture sells reproductions of 18th century furniture. For a particular table, the assumptions of the inventory model with backorders are valid. D = 200 tables per year I = 25% per year C = $800 per table C_o = $80 per order C_b = $50 per table per year The store is open 250 days a year. a.What are the values for order quantity and number of planned backorders that will minimize total cost? b.What is the maximum inventory? c.What is the cycle time? d.What is total cost?

Henderson Furniture Sells Reproductions of 18th Century Furniture