Assignment:
Q1. List and describe the features of EOQ and ABC.
Q2. List and describe the types of carrying costs and ordering costs?
Q3. What is the ROP? How is it determined?
Q4. What is the purpose of sensitivity analysis?
Q5. What is the objective of JIT?
Q6. Ross White’s machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 250 working days per year.
1. What is the EOQ?
2. Given the EOQ, what is the average inventory? What is the annual inventory holding cost?
3. In minimizing cost, how many orders would be made each year? What would be the annual ordering cost?
4. Given the EOQ, what is the total annual inventory cost (including purchase cost)?
5. What is the time between orders?
6. What is the ROP?
Q7. The EOQ model has a number of assumptions. List them and explain whether they are readily attainable. For example, will the adjustment for quantity discounts easily work?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.