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In: Operations Management

A company orders every 8 weeks. 52 weeks/8 weeks per order = 6.5 orders per year....

A company orders every 8 weeks. 52 weeks/8 weeks per order = 6.5 orders per year. Explain the non-integer value for number of orders per year.

Solutions

Expert Solution

The company is ordering every 8 weeks.

So, the average number of orders per year = 52 weeks / 8 weeks = 6.5

6.5 is the average number of orders that the company has made in a year, and it can be an integer as well as non-integer. The average number of orders may or may not be the same as the exact number of orders made by the company in a year.

If the company is ordering once every 4 weeks,  the average number of orders per year = 52 / 4 = 13. Here, the average number of orders is an integer.

Therefore, the average number of orders the company makes in a year can be both an integer as well as non-integer, depending on the number of weeks in which the company orders.

Taking the case when the company orders every 8 weeks.

Let's consider the year 2020.

Assume that the 1st ordering date is 1st Jan 2020

So, 2nd  ordering date shall be 26th Feb 2020 ( ie after 8 weeks of 1st ordering date)

3rd ordering date shall be 22nd April 2020

4th ordering date shall be 17th June 2020

5th ordering date shall be 12th Aug 2020

6th ordering date shall be 7th Oct 2020

7th ordering date shall be 2nd Dec 2020

So, here the company has ordered 7 times in the year.

However, if the 1st ordering date is changed to 31st Jan 2020, only 6 orders shall be possible in the year as the 6th ordering date shall be 6th Nov. The next order shall be after 8 weeks which will cross the month of December.

In both the above cases, the average number of orders in the year shall be the same ie 6.5.

So, it is clear that 6.5 is the average number of orders and not the exact number of orders in the year. The exact number of orders may be either 6 or 7, depending on the ordering dates. Therefore, the average number of orders is non-integer in this case.

keosha answered 4 hours ago
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