The EOQ. Introduction: Economic order quantity (EOQ): EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Question

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Answer 1

Question

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

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Students have asked these similar questions

If D = 8,000 per month, S = $45 per order, andH = $2 per unit per month,a) What is the economic order quantity?b) How does your answer change if the holding cost doubles?c) What if the holding cost drops in half?

10 Use the information presented in the graph to answer the following questions: Annual Cost C3 C2 Q1 You are also given the following information: Q1 =450 .Q2 = 700 C1 = 350 C2 = 750 1300 Q2 Order Quantity Which annual inventory cost component does the blue line represent? Total cost Which annual inventory cost component does the green line represent? Holding cost What is the Economic Order Quantity (EQ9) based on th Which annual inventory cost component does the red line represent? Ordering cost 220

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 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 6

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 7

Chapter 12, Problem 8P

a)

Summary Introduction

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 8

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 9

b)

Summary Introduction

To calculate: The EOQ when holding cost is doubled.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 10

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 11

c)

Summary Introduction

To calculate: The EOQ when holding cost is halved.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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The EOQ. Introduction: Economic order quantity (EOQ): EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Solution Summary: The author explains the economic order quantity (EOQ), which is the quantity of units a company must add to its inventory to minimize the total inventory costs.

Concept explainers

Videos

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Want to see the full answer?

Chapter 12 Solutions

The EOQ. Introduction: Economic order quantity (EOQ): EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Solution Summary: The author explains the economic order quantity (EOQ), which is the quantity of units a company must add to its inventory to minimize the total inventory costs.

Concept explainers

Videos

To calculate: The EOQ. Introduction: Economic order quantity (EOQ): EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.

Want to see the full answer?

Chapter 12 Solutions

To calculate: The EOQ.

Introduction:

Economic order quantity (EOQ):

EOQ is the quantity of units a company must add to its inventory so as to minimize the total inventory costs. It will determine the ideal order quantity which will decrease the inventory management costs.