Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 84 views

    50

    Uploaded by

    sv03

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    50

    Uploaded by

    sv03
    84 views3 pages

    Original Title

    docx-50.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    84 views3 pages

    50

    Uploaded by

    sv03

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    QUIZ 1 1

    5.1

    Bell Technologies stocks and sells its own brand of laptop computers. It costs the firm $543 each

    time it places an order with the manufacturer for laptops. The cost of carrying one laptop in

    inventory for a year is $210. The store man- ager estimates that total annual demand for the

    computers will be 1,800 units with a constant demand rate throughout the year. Bell’s policy is

    never to have stockouts of the store-brand laptop. The store is open for business seven days per

    week from 9 a.m. to 6 p.m. Determine the following:

    a) Optimal order quantity per order

    EOQ = √ [(2*1800*543)/ (210)]

    √ (1954800/210)

    √9308.57 = 96.48

    EOQ = 97 units per order

    b) Minimum total annual inventory costs

    TAC = [(1800/97) * 543] + [(97/2) * 210]

    10076.29 + 10185

    TAC = $20261.29

    c) The number of orders per year

    Orders per Year = 1800 / 97

    Orders per Year = 18.56 (round up to 19 orders per year)

    d) The time between orders (in working days)

    TBO = 97 / (1800/365)

    97 / 4.93

    TBO = 19.67 days


    QUIZ 1 2

    5.3

    Premier Golf Shop operates 300 days per year. The shop pays $300 for a particular beginner

    golf club set purchased from a local manufacturer. The annual holding cost per club set is

    estimated to be 25 percent of the dollar of the inventory. The shop sells an average of 20 per

    week. The ordering cost for each order is $50. Determine the optimal order quantity and the total

    minimum cost.

    Holding Cost = 300 * .25 = 75

    Total Annual Demand = (300/6) * 20 = 50 * 20 = 1000

    EOQ = √ [(2*1000*50)/ (75)]


    √ (100000/75)

    √1333.33

    36.51

    EOQ = 37 units

    TAC = [(1000/37) * 50] + [(37/2) * 75]

    1351.35 + 1387.5

    TAC = $2738.85

    5.5

    The Buckeye Carryout store stocks Scarlet and Grey (S&G) beer mugs. Demand for S&G is

    10,200 per year. It costs $120 per order of mugs, and it costs $1.35 per mug per year to keep the
    QUIZ 1 3

    mugs in stock. Once an order for mugs is placed, it takes seven days to receive the order from the

    distributor. Determine the following:

    a) Optimal order size

    EOQ = √ [(2*10200*120)/ (1.35)]

    √ (2448000/1.35)

    √1813333.333

    1346.60

    EOQ = 1347 units per order

    b) Minimum total annual inventory cost

    TAC = [(10200/1347) * 120] + [(1347/2) * 1.35]

    908.69 + 498.89

    TAC = $1407.58

    c) Reorder point

    R = (10200/365) * 7 + 0

    27.95 * 7

    R = 195.62 units

    You might also like