Problem 1. Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. $ $ Item cost Order cost annual hold cost (%) Annual demand average demand Standard deviation of weekly demand lead time service probability Last Year 10.00 250.00 33% of item cost 25,750 515 per week 25 per week 1 week 95% a) state the order quality and re-order point. Annual demand = 25,750 3 $250.00 Annual holding cost ($) per units Ordering cost = EOQ (Economic Order quantity) = 2 DS 9 H Average demand = 515 Lead time = 1 1.64 From Standard normal distribution, z = Stand deviation durng lead time = Re-order Point = R=_L +:0, 25 b) determine the annual holding and order costs Annual demand = 25,750 EOQ = Ordering cost (S) = $250.00 Annual ordering Costs = D O S $3.30 Annual holding cost($) per unit = 9 Annual Holding Cost = _ 2 c) if a price break of $50 per order was offered for purchase quantities of over 2,000, would you take advantage of it? how much would you save annualy? CH Annual holding cost = D Annual ordering cost = D Total annual cost = H is + O WI Total annual cost with discount = Saving =
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more