1. Problem 1: What is the Total Annual Value of all of the times in Problem 1? Format as $xxx,xxx (Use the dollar sign and the comma.)
2. Problem 1: Which Items would you identify as A items? Use only the number of items and total annual cost as your criteria. Just type the names of the items.
3. Problem 1: What is the annual dollar value for the A item(s) you identified in the previous question? (Format as $xxx,xxx)
4. For Problem 2: What are the annual inventory costs of your current "order 100" plan? (Format as $x,xxx Use the dollar sign and the comma.)
5. For Problem 2: What is the EOQ? (remember round up to the nearest whole unit.) Format as xx
6. Problem 2: What is the Reorder Point? Round up to the nearest whole number
7. Problem 2: In ONE short sentence, explain what your answer to question 6 (ROP) means.
8. For Problem 2: What is your costs savings of using the EOQ order quantity and your "order 100" policy? Format as $xxx.xx
9. For Problem 2: Provide a revised ordering policy, one that is close to the EOQ answer, but a bit eaiser to implement. Don't just use the EQO and ROP that you calculated above. You are the manager, use your discretion and propose something else.
For example, it would be hard to place an order every 17 days for 117 units. (These are example numbers and not numbers you should have found for your answer(s) above.) It would be eaiser to place an order every 14 days (every other week) for 100 units. What would your reorder policy be and how much would it cost annually. The only criteria is that you have to at least order the annual demand (500 per year.)
Provide your policy and the total annual inventory cost of your policy. A short paragraph will do.
10. Problem 3: If you used an EOQ (not the POQ) to determine the order quantity, it would be: Format as xx,xxx
11. Problem 3: If you used the POQ to calculate order quantity it would be: xx,xxx
12. Problem 3: what is the total annual inventory cost of the POQ plan? Format as $xxx
13. Problem 4: What is the EOQ for the first price category? Remember to round up.
14. Problem 4: What is the EOQ for the second price category? Remember to round up.
15. Problem 4: What is the EOQ for the third price category? Remember to round up.
16. Problem 4: What is the quantity you would actually order if using the first price category?
17. Problem 4: What is the quantity you would actually order if using the second price category?
18. Problem 4: What is the quantity you would actually order if using the third price category?
19. Problem 4: How many should you order and what is the total cost of your recommendation?