1.Using the data on the two part numbers given, provide a comprehensive evaluaton of the orderingpolicies. Compare the present annual average cost with the cost of using a system such as EOQ, anddiscuss any other order policies as appropriate.Analysis:The table will is showing a comparison of the present annual average cost with the cost of using EOQ forparts A233 circuit board and P656 powder supply respectvely.Conclusion:From the table we can see that cost of EOQ less than the present annual average cost. EOQ order policy canhelp Carl’s company minimize their annual total spent, and optmize their ordering cost and inventoryholding cost. (…)This study source was downloaded by 100000817023871 from CourseHero.com on 07-20-2021 18:56:34 GMT -05:00
2.Should Carl’s pursue the price break? Why or why not?If Carl would order 200 or more at a tme then the unit cost will reduce $16.Conclusion:We would recommend to pursue price break for A233 circuit board if demand of Carl’s computer is constant.