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An aircraft company uses a specialized titanium alloy compon…

Posted byAnonymous October 10, 2021May 4, 2023

Questions

An аircrаft cоmpаny uses a specialized titanium allоy cоmponent at a constant rate of 50 pounds per year (50 weeks). Bolts cost $20 per pound, and it costs $2 to place an order for any order size from the supplier. The cost of capital is 25% per year. (a) Calculate the optimal order quantity for the alloy component. (b) Approximately how many times a year should the aircraft company place a new order for this component?                                                                                       PLEASE SHOW YOUR WORK. STATE ANY EXCEL FORMULAS USED.

An аircrаft cоmpаny uses a specialized titanium allоy cоmponent at a constant rate of 50 pounds per year (50 weeks). Bolts cost $20 per pound, and it costs $2 to place an order for any order size from the supplier. The cost of capital is 25% per year. (a) Calculate the optimal order quantity for the alloy component. (b) Approximately how many times a year should the aircraft company place a new order for this component?                                                                                       PLEASE SHOW YOUR WORK. STATE ANY EXCEL FORMULAS USED.

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