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

This preview shows page 1 - 5 out of 5 pages.

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
Image of page 1

Subscribe to view the full document.

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
Image of page 2
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
Image of page 3

Subscribe to view the full document.

Image of page 4
Image of page 5
You've reached the end of this preview.
  • Spring '14
  • FredPhillips

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern