Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Subject: Logistic management
The following information is given to you D = 19,000 units/yr; H = $4/unit/year; S=$25/order. Calculate the EOQ, Annual holding cost and annual ordering cost.
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- K William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number) b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).arrow_forward← William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ 1145 (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number).arrow_forwardAustin medical doctor's office uses 9,000 hypodermic needles per year. These needles are purchased from a medical supplier 150 miles away. The setup or ordering cost is $10 per order, the holding or carrying cost per unit per year is $0.50. There are 300 working days per year, and lead time is 2 days If EOQ model is employed, what would be the daily demand rate? Keep your written work. Select one: a. 60 O b. 20 Ос. 30 O d. 15 e. 10arrow_forward
- Please do not give solution in image format thankuarrow_forwardIf annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, what is the EOQ lot size?arrow_forwardIf annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, what is the EOQ lot size?arrow_forward
- 20 Lead time for one of your fastest-moving products is a) What would be an appropriate reorder point? 100 days. Demand during this period averages units per day. units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number). units (enter your response as a whole number).arrow_forwardExplore the role and implications of safety stock within the framework of the Wilson approach for effective inventory control.arrow_forwardExplain Planning and Replenishment concepts related to Independent demand inventory?arrow_forward
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