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?
| Quantity | Price |
| 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?
Selected Local Anesthetics
Chemical structures of ester and amide local anesthetics.
Recommended Maximum Doses of Local Anesthetics with Vasoconstrictor
Calculation of the Amount of the Local Anesthetic and Vasoconstrictor
Hives is a general contraindication in the acute phase and a local contraindication in the subacute ...
Psoriasis is a local contraindication for massage only during an acute outbreak.