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Author Question: A local artisan uses supplies purchased from an overseas supplier. The owner believes the ... (Read 66 times)

jilianpiloj

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on: Dec 3, 2019

Question 1

The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following price breaks for purchasing the item? What price should the firm pay per unit? What is the total annual cost at the optimal behaviour?

QuantityPrice
1-9$2.95 per unit
10 - 999$2.50 per unit
1,000 - 4,999$2.30 per unit
5,000 or more$1.85 per unit


Question 2

A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs is her objective. Relevant data, from the files of the craft firm, are annual demand (D) = 150 units, ordering cost (S) = $42 per order, and holding cost (H) = $4 per unit per year.

a. How many should she order at one time?
b. How many times per year will she replenish her inventory of this material?
c. What will be the total annual inventory costs associated with this material?
d. If she discovered that the carrying cost had been overstated, and was in reality only $1 per unit per year, what is the corrected value of EOQ?
Operations Management (Canadian Edition) ¦ Heizer, Render, Griffin ¦ 1st Edition
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Marked as best answer by jilianpiloj on Dec 3, 2019

Melissahxx

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Reply #1 on: Dec 3, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jilianpiloj

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)

amandalm

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Reply 3 on: Yesterday
Excellent

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