AC2720 Wk5 Exercise 2

# AC2720 Wk5 Exercise 2 - D P Q Q C 2 C DP 2 EOQ Complete the...

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Problem 1 Part 1: EOQ

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Economic order quantity for a retailer

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Problem 3 Part 1: EOQ Part 2: Number of orders per year = Part 3: Demand each working day = Purchase lead time Reorder point C DP 2 EOQ EOQ D days working of Number D
Economic order quantity for a retailer 8712000 = 2200 yards 1.8 26,400 = 12 orders per year 2,200 26,400 = 28 yards per wee 250 2 weeks 1,056 yards

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Problem 4 Part 1: EOQ Relevant carrying costs per part per year Required annual return on investment Relevant carrying costs per part per year Define variables D= P= C= Part 2: Relevant annual ordering costs = Part 3: Relevant annual carrying costs = Part 4: Reorder point Relevant insurance, materials handling, breakage, etc cost per year

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Unformatted text preview: D P Q Q C 2 C DP 2 EOQ Complete the statement below: Turfpro should reorder when the inventory o Economic order quantity for a manufacturer r are calculated as follows: 4.5 3 7.5 4500 parts per year 75 7.50 per part per year 675000 = 300 units 7.5 4500 * 75 300 300 * 7.5 2 Purchase order lead Tme is half a month. Monthly demand is 4,500 units / 12 months = 375 units per month. Demand in half a month is (1/2) * 375 units or 188 units. of rotor blades falls to _188 __ units. = 300 = 1125...
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