The economic order quantity.

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Answer 1

Question

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The annual holding cost.

c)

Summary Introduction

To determine: The annual ordering cost.

d)

Summary Introduction

To determine: The reorder point.

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Compute the economic order quantity. Economic order quantity = 1600 Compute the ordering, carrying, and total costs for the EOQ. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?

Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25.00 for each order, with an annual holding cost of $24.00. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your response to the nearest whole number). b) What is the economic order quantity? units (round your response to the nearest whole number). Order Size 25 40 50 60 100 Total Cost ($)

Annual demand= 360 units Holding cost per year = 1 $ per unit Ordering cost = $ 100 per order Compute EOQ , total cost(holding and ordering cost),no of order per year and expected time (days) between orders(Assuming a 300-day work ) and what would the actual total holding and ordering costs be if the annual demand was actually higher than estimated i.e 500 units instead of 360 units, but the EOQ established above is used. If demand for an item is 3 units per day, and delivery lead time is 15 days, what would be the re-order point?

Answer 2

Question

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The annual holding cost.

c)

Summary Introduction

To determine: The annual ordering cost.

d)

Summary Introduction

To determine: The reorder point.

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Answer 3

Question

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The annual holding cost.

c)

Summary Introduction

To determine: The annual ordering cost.

d)

Summary Introduction

To determine: The reorder point.

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Answer 4

Question

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The annual holding cost.

c)

Summary Introduction

To determine: The annual ordering cost.

d)

Summary Introduction

To determine: The reorder point.

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Answer 5

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The annual holding cost.

c)

Summary Introduction

To determine: The annual ordering cost.

d)

Summary Introduction

To determine: The reorder point.

Answer 6

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

Answer 7

Chapter 12, Problem 33P

a)

Summary Introduction

To determine: The economic order quantity.

Answer 8

b)

Summary Introduction

To determine: The annual holding cost.

Answer 9

b)

Summary Introduction

To determine: The annual holding cost.

Answer 10

c)

Summary Introduction

To determine: The annual ordering cost.

Answer 11

c)

Summary Introduction

To determine: The annual ordering cost.

Answer 12

d)

Summary Introduction

To determine: The reorder point.

Answer 13

d)

Summary Introduction

To determine: The reorder point.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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The economic order quantity.

Solution Summary: The author explains the economic order quantity, the annual holding cost and the reorder point.

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To determine: The economic order quantity.

To determine: The annual holding cost.

To determine: The annual ordering cost.

To determine: The reorder point.

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