The following 3-part exercise is based on the Operations Management topic of Inventory Cost:Reminder: If a Q is given, use that. If not then calculate EOQ. 1) Each week you sell 18 desks. You order 51 desks at a time. Each order costs you 52 in labor to order, check in, store and pay the invoice. You sell each desk for $57 in profit.What are your annual ordering costs? 2) Each month you sell 1,106 couches. Your order couches in truckload quantities of 325 and estimate that each truck costs you $55 to unload and put away. You estimate that the storage space for one couch is worth $6.90 monthly.What is your annual holding cost? 3) Each year you consume 3,014 pounds of butter in your restaurant and pay an average of 3.27 for each pound. You estimate a pound of butter costs 8.76 per month to store in your refrigerator. You order butter in quantities of 54 pounds and estimate it costs you 6.99 to unload and store each order of butter.What are your annual purchase costs? 123Reminder: If a Q is given, use that. If not then calculate EOQ.Each week you sell 18 desks. You order 51 desks at a time. Each order costs you 52 in labor to order, check in, store and pay the invoice. You sell each desk for $57 in profit.What are your annual ordering costs?Type your answer...What is your annual holding cost?Type your answer...Each month you sell 1,106 couches. Your order couches in truckload quantities of 325 and estimate that each truck costs you $55 to unload and put away. You estimate thatthe storage space for one couch is worth $6.90 monthly.11--DOEach year you consume 3,014 pounds of butter in your restaurant and pay an average of 3.27 for each pound. You estimate a pound of butter costs 8.76 permonth to store your refrigerator. You order butter in quantities of 54 pounds estimate it costs you 6.99 to unload and store each order of butter.DOWhat are your annual purchase costs?Type your answer...

Weekly demand (d) = 18 desksOrder Quantity (EOQ) = 51 desksOrdering costs (S) = $52

Answered: The following 3-part exercise is based…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The following 3-part exercise is based on the Operations Management topic of Inventory Cost:

Reminder: If a Q is given, use that. If not then calculate EOQ.

1) Each week you sell 18 desks. You order 51 desks at a time. Each order costs you 52 in labor to order, check in, store and pay the invoice. You sell each desk for $57 in profit.

What are your annual ordering costs?

2) Each month you sell 1,106 couches. Your order couches in truckload quantities of 325 and estimate that each truck costs you $55 to unload and put away. You estimate that the storage space for one couch is worth $6.90 monthly.

What is your annual holding cost?

3) Each year you consume 3,014 pounds of butter in your restaurant and pay an average of 3.27 for each pound. You estimate a pound of butter costs 8.76 per month to store in your refrigerator. You order butter in quantities of 54 pounds and estimate it costs you 6.99 to unload and store each order of butter.

What are your annual purchase costs?