Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (Model...

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Ray’s Satellite Emporium wishes to determine the best order sizefor its best-selling satellite dish (Model TS111). Ray hasestimated the annual demand for this model at 1,000 units. His costto carry one unit is $10 per year per unit, and he has estimatedthat each order costs $25 to place. The purchase cost is $500 perunit.
For the order quantities Q = {25, 50, 75, 100, 125, 150}, findthe annual setup ordering cost (SD/Q), holding cost (HQ/2),purchasing cost (C*D), and the total annual cost (including thepurchase cost) Report the results for order quantity 25 inAnswersheet (3 points).
Report the Q value with the minimum total cost (select from thelist in cell B12) and the corresponding total cost in Answersheet(2 points).

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To be calculated For each given order quantities Q 25 50 75 100 125 150 Annual Setup cost Holding cost Purchasing cost Total annual cost Given values Annual demand 1000 units Holding cost 10 per year per unit Setup or Ordering cost S 25 Purchase cost C 500 per unit Solution a Order quantity Q 25 Annual Setup cost SDQ 25 x 1000 25 1000 Holding cost HQ2 10 x 25 2 125 See Answer

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