M02 Problem Set Sp2010

# M02 Problem Set Sp2010 - SCM 300 Module 02 Problem Set...

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SCM 300 – Module 02 Problem Set Spreadsheet Problem Annual Demand (D) 8000 Ave Weekly Demand 153.85 D/52 Ave Daily Demand (d) 21.92 D/365 Unit Cost ( C ) \$16.00 Ordering Cost (S) \$40.00 Holding Cost ( % of C ) 25.00% Holding Cost (H) \$4.00 C * 0.25 Annual Cost of Item (DC) Q D/Q (Q/D) 52 (D/Q) S Q/2 (Q/2) H AOC AHC TC Lot Size (Order Size) Orders/Yr Time Between Orders (weeks) Order Cost Average Inventory Carrying Cost Total Cost 100 80.0 0.65 50 \$200.00 \$131,400.00 200 40.0 1.3 100 \$400.00 \$130,000.00 300 26.7 1.95 150 \$600.00 400 20.0 2.6 200 \$800.00 500 16.0 3.25 250 \$1,000.00 600 13.3 3.9 300 \$1,200.00 700 11.4 4.55 350 \$1,400.00 \$129,857.14 800 10.0 5.2 400 \$1,600.00 \$130,000.00

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SCM 300 – Module 02 Problem Set GRAPH for Spreadsheet Problem \$ 1800 1600 1400 1200 1000 800 600 400 200 0 100 200 300 400 500 600 700 800 900 Q
SCM 300 – Module 02 Problem Set Problem Set 1. Givens : Annual Demand = 15,000 Units Holding Cost = 0.30 or 30% of unit cost per unit per year Unit Cost = \$10.00 Cost to Place an Order = \$125.00 a. Find EOQ b. TC if Q=EOQ c. TBO if Q=EOQ a. Find EOQ EOQ = 2SD = 2 (\$125) 15,000 = H \$3.00 b. TC if Q=EOQ TC = DC + (Q/2) H + (D/Q) S TC = Item Cost + AHC + AOC TC = 15,000 (10) + (1118/2) 3 + (15,000/1118) 125 TC = 150,000 + ____________ + ____________ TC = ________________ COST COST QUANTITY (Q) QUANTITY (Q) Annual Holding Cost Annual Holding Cost Annual Ordering Cost Annual Ordering Cost 1118.03 1118.03 Total Cost 1118 1118 NOTE: When Q is greater than EOQ, AHC > AOC. You are holding too much. When Q is less than EOQ, AHC < AOC.

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## This note was uploaded on 02/09/2010 for the course SCM scm 300 taught by Professor Davilas during the Spring '10 term at ASU.

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M02 Problem Set Sp2010 - SCM 300 Module 02 Problem Set...

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