Question

12. If a company has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of

6,000 units, and its production rate is 100 units per day, the optimal order quantity is approximately

a. 866

b. 756

c. 945

d. 1,027

13. If a company has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of 6,000 units, and its production rate is 100 units per day, the total minimum inventory cost is

approximately

a. $3,464

b. $2,921

c. $3,944

d. $3,175

14. A store has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of 6,000 units, and it purchases product from a supplier for $500 per unit, however, the supplier has offered the store a discount price of $400 if it will purchase 1,200 units; the store’s optimal order

quantity is

a. 866

b. 1,200

c. 756

d. 945

Answer 1

1) given demand= 6000

ordering cost( S) = 250$

carying cost (H)= 4

EOQ= = = 866

a) EOQ= $866

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13. If a company has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of 6,000 units, and its production rate is 100 units per day, the total minimum inventory cost is

D= 6000

C= 100, S= 250, H= 4

Miimum Inventory == = $ 3464

a) Inventory = $3464

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14. A store has an ordering cost of $250, a carrying cost of $4 per unit, annual product demand of 6,000 units, and it purchases product from a supplier for $500 per unit, however, the supplier has offered the store a discount price of $400 if it will purchase 1,200 units; the store’s optimal order

EOQ= sqrt{ (2* 7200* 250)/4} = 945

d . 945