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hw3 - 1 D= demand S= ordering cost D= 30000 S=\$450 Qo = sq...

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1. Q o = sq root(2DS/H) D= demand, S= ordering cost, H = holding cost D= 30000 S=\$450 H=.20*\$15=\$3 Q o = sq root(2*30000*450)/(3) = 3000 mice 2. average inventory = 0.5Q = 3000/2 = 1500mice 3. # of orders per year = D/Q = 30000/3000 = 10 orders per year 4. Annual holding cost = ((Q o /2)H) = (3000/2)*3 = \$4500 5. Annual ordering cost = (D/Q o )S = (30000/3000)*450 = \$4500 A, 12 , damage 1. Q o = sq root(2DS/H) D= demand, S= ordering cost, H = holding cost D= 30000 S=\$450 H=.20*\$15=\$3 Q o = sq root(2*30000*450)/(3) = 3000 mice 2. average inventory = 0.5Q = 3000/2 = 1500mice 3. # of orders per year = D/Q = 30000/3000 = 10 orders per year 4. Annual holding cost = ((Q o /2)H) = (3000/2)*3 = \$4500 5. Annual ordering cost = (D/Q o )S = (30000/3000)*450 = \$4500

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Question 1 4 out of 4 points Please choose "A" to get free 4 points. Selected Answer: A Correct Answer: A Question 2 1 out of 1 points In the basic EOQ model, if D = 60 per year, S = \$12, and H = \$10 per unit per year, EOQ optimal quantity is: Selected Answer: 12 Correct Answer: 12 Feedback: sqrt (2DS/H) Question 3 1 out of 1 points Which item is NOT a holding cost? (hint: what is a so called sunk cost?) Selected Answer: Warehouse expense: the warehouse was bought two years ago at \$40,000. The management determined that for each unit of
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