Samsung Co. forecasts that the customer demand next year is 37,230 TVs.Samsung orders Smart Chip from a supplier to hold stock. The assembly of a TVneeds 3 chips. The cost for each order is $50. The unit price of Smart chip is$100. The annual holding cost is 20% unit price of Chip. The maximum capacity ofproducing is 100 TVs/day. The working day is 365 days/year. The contemporaryinventory policy of Samsung is Ordering these Chip every 3 months.a. Calculate recent total ordering cost and total holding cost of Samsung?b. When EOQ model applied, what is the economic order quantity? What is averageinventory?c. If the company follows EOQ, how much can the company save?d. Determine ROP if leadtime is 2 days
Samsung Co.
Samsung orders Smart Chip from a supplier to hold stock. The assembly of a TV
needs 3 chips. The cost for each order is $50. The unit price of Smart chip is
$100. The annual holding cost is 20% unit price of Chip. The maximum capacity of
producing is 100 TVs/day. The working day is 365 days/year. The contemporary
inventory policy of Samsung is Ordering these Chip every 3 months.
a. Calculate recent total ordering cost and total holding cost of Samsung?
b. When EOQ model applied, what is the economic order quantity? What is average
inventory?
c. If the company follows EOQ, how much can the company save?
d. Determine ROP if leadtime is 2 days
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