1. You are provided with the following information about for an item: holding cost rate 18%, unit cost $8.000, annual demand of 40000, and ordering cost of $48. Show the total cost expression and calculate the EOQ.
a. what is the total cost exoression ( use Q for ordering quantity, not Q*)?
b. What is the EOQ?
2. Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding cost are charged at 22% of the cost per unit. The lead time is two weeks:
a. What is the EOQ ( Optiona order quantity)
b. what is the reorder point?
c. What is the cycle time?
d. What is the total annual cost?
3. The super discount store ( open 2 hours a day, every day) sells 8- packs of paper towels, at the rate of approximately 420 packs per week. Because the towels areare bulky, the annual cost to carry them in inventory is estimated at $.50. The cost to place oredr for more is $20 and it takes four days for an order to arrive.
a. Find the optimal order quantity
b. what is the reorder point?
c. How often should an order be placed?
4. An office supply store open 6 days a week must determine the best inventory policy for boxes fo copier paper. weekly demand is nearly constant at 360 boxes and when orders are placed, then entire shipment arrives at once. the cost per box is $22 and inventory holding cost is 30% of $40 each, including preparation time and communication charge, andthe lead time is 2 days.
a. Find the optimal order quantity?
b. How often an oredr be place( in a year)?
c. How often an order be placed ( in days) ?
d. what is the reorder point
5. kellam Images prints snack food bags on long rolls plastic film. The plant operates 250 days a year. The daily production rate is 6000 bags, and the demand is 350 bags. . The holding cost is estimated at 2 cents per bag.
a. What is the recommended production lot size?
b. if there is a five-day lead time to set up the line, what is the recommended reorder point?
6. The tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collection. There are about 1800 visitors per year. Holding costs for brochures are 20% and it costs &30 to place an order an order with printer. The printer has offered the following discount schedule:
category order size Unit Cost
1 0-1499 $2.50
2 1500-2999 $2.20
3 3000 and over $1.80
How many brochures should be printed at a time?