The Pacific Lumber Company and Mill processes 10,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company's supplier begins delivery to the lumber mill, at a rate of 60 logs per day. The lumber mill has determined that the ordering cost is $1,600 per order and the cost of carrying logs in inventory before they are processed is $15 per log on an annual basis.

Determine the following:

a. The optimal order size

b. The total inventory cost associated with the optimal order quantity

c. The number of operating days between orders

d. The number of operating days required to receive an order

Explanation:

a. The optimal order size

Qopt = root of 2*Co*D/Cc(1-d/p)

Co - Setup sost, $1600

D - Demand, 10000

Cc - Carrying cost, $15/log

p - production rate, 60logs/day

d - inventory demand rate = Demand/days = 10,000/250 = 40logs/day

Qopt = root of 2*1600*10000/15*(1-40/60) = root of 32,000,000/4.95 = 2543logs

b. The total inventory cost associated with the optimal order quantity

TC = Co*D/Qopt + [Cc*Qopt/2 ] *(1 - d/p)

TC = 1600*10000/2543 + [15*2543/2] *(1-40/60) = 6291.78 + 6293.76 = 12585.54

c. The number of operating days between orders

N = D/Qopt

N = 10000/2543 = 4 (optimal number of orders per year)

T = Days/N = 250/4 = 62.5 days

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.