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5_Tutorial_Exercises_Solution

5_Tutorial_Exercises_Solution - MS3401(Summer Term Chapter...

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MS3401 (Summer Term) Chapter 16: Inventory Management Q4 Solution D = 35000 C o = $500 C c = $0.35 Q = c o C D C 2 = 35 0 35000 500 2 . ) )( ( = 10000 yards TC = C c 2 Q + C o Q D = (0.35) 2 10000 + (500) 10000 35000 = 1750 + 1750 = $3500 Number of orders = Q D = 10000 35000 = 3.5 per year Time between orders = 5 3 365 . = 104.3 days Q5 Solution D = 1215000 C o = $1200 C c = $0.08 a) Q = c o C D C 2 = 08 0 1215000 1200 2 . ) )( ( = 190918.8 lbs b) TC = C c 2 Q + C o Q D = (0.08) 2 8 190918 . + (1200) 8 190918 1215000 . = $15273.51 c) Number of orders = Q D = 8 190918 1215000 . = 6.36 orders d) Time between orders = 36 6 365 . = 57.4 days
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