Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Period 1 2 3 Regular Time 40 35 30 Supply Available Overtime 15 15 20 Subcontract 10 10 10 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month. Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ 20 units $100 $150 $250 $2 Demand Forecast 40 60 50 (enter your response as a whole num

Annual demand for squash racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs for the company amount to P5. The optimum order quantity in units for squash racquets is (rounded to the nearest unit):

Objectives of Inventory Control in Procter & Gamble.

Current decision to buy: Ross White's machine shop uses 200 brackets each month during the course of a year. This usage is relatively constant throughout the year. Currently, these brackets are purchased from a supplier 100 miles away for $16 each and the lead time is 2 days. The holding cost per bracket per year is $1.60 (10% of the unit cost) and the annual ordering cost per order is $18.50. There are 240 working days per year. Possible future decision to make in-house: Ross White is reconsidering his decision of buying the brackets and is considering making the brackets in-house. He has determined the set up costs would be $24.50 in machinist time and lost production time. Forty eight brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor and materials) of producing one bracket would be $14.85. The holding cost would be 10% of the cost. a. What is the EOQ given Ross' current decision to buy the brackets? What is the total…