hw9.docx

# hw9.docx - a Q= 2 DS = 215,00075/25=300 units H b Q H 2 =...

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a) Q = 2 DS H = 2 15,000 75 / 25 = 300 units b) Q * H / 2 = 300 * 25 / 2 = \$3750 c) D * S / Q = 15,000 * 75 / 300 = \$3750 d) Demand per day = 15,000 / 300 = 50 units Reorder point = Demand per day * Lead time = 50 * 2 = 100 units

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a) Daily demand = 12,500 / 250 = 50 units Economic production quantity: Q = 2 DS H ( 1 d P ) = 2 12,500 30 2 ( 1 50 / 300 ) = 670.82 = 671 b) Number of production runs per year = annual demand / production run size = 12,500 / 671 = 18.63 So 19 production runs per year. c) Maximum inventory level = Q(1-d/p) = 671 (1 – 50 / 300) = 559.17 = 560 d) (Q / p) / (Q / d) = d / p = 50 / 300 = 1 / 6 = 16.67% e) Annual cost of ordering inventory = Number of production runs per year * S = 19 * 30 = \$570 (PS: production run should be an integer, so I use 19 instead of 18.63) Annual cost of holding inventory = (Maximum inventory level / 2) * H = (560 / 2) *2 = \$560 Total cost = Annual cost of ordering inventory + Annual cost of holding inventory = 570 + 560 = \$1130
a) Order quantity: Q = 2 DS H = 2 ∗( 400 12 )∗ 120 35 = 181.42 So the unit price = \$325 Total cost = (D / Q) * S + (Q / 2) * H + P * D = (400 * 12 / 181.42) * 120 + (181.42 / 2) * 35 + 325 * (400 * 12) = \$1566349.80 (PS: When the holding cost is fixed, the order quantity is independent from unit price, because the equation above is independent from unit price.) b) Price per unit = \$350 Order quantity: Q = 2 DS IP = 2 ∗( 400 12 )∗ 120 10 350 = 181.42 Not in range 1-99 units

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