Mathematics, 26.02.2021 14:00 jinn53
Joshua is running a pharmacy in Nigeria (where Naira is the local currency). His recent experience in the MicroMasters course motivated him to rethink how to reorder pharmaceuticals to replenish inventory. He recalls from Module 4, Unit 1, Video 5, that he should consider the purchase cost, the order cost, and the holding cost. In the past, Joshua rigorously tracked these cost items. For Ibuprofen he knows that:
unit cost: c = 175 Naira/pack
demand: D = 690 packs/year
ordering cost: A = 2000 Naira/order
holding cost: r∗c = 42 Naira/pack*year
How many packs of Ibuprofen should Joshua order to minimize the total cost?
Answers: 1
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Joshua is running a pharmacy in Nigeria (where Naira is the local currency). His recent experience i...
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