Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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A, B, C please 

Problem #1- Sumco Pump Company-Modified, from textbook page #192.
Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8
per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions:
a.
Calculate the new EOQ.
Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost.
) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount
calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory
b.
С.
Position. Guidance: review Procomp's example on textbook page #195.
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Transcribed Image Text:Problem #1- Sumco Pump Company-Modified, from textbook page #192. Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8 per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions: a. Calculate the new EOQ. Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost. ) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory b. С. Position. Guidance: review Procomp's example on textbook page #195.
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