Homework chapter 16

Homework chapter 16 - order Cost (Co) Annual Demand (D)...

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order Cost (Co) $500 per order Annual Demand (D) 35,000 yards denim Carry Cost (Cc) 0.35 Ordering Cost = Co *(D/Q) 1750 Carrying Cost = Cc *(Q/2) 1750 Minimium Inventory Cost = Ordering Cost + Carrying Cost 3500 Total Annual Inventory Cost: =Co*(D/Q)+Cc*(Q/2) minimum total annual inventory cost= 3,500 Optimal number of orders per year: D/EOQ Optimal number of orders= 4 Order Cycle time year/(D/EOQ) Optimal time between orders 91.25
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Optimal Order Size: Q(opt)=sqrt((2Co*D)/Cc) Optimal number of yards(EOQ)= 10,000 91.25
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Order Cost (Co) 2600 per order Optimal Ord Holding Cost (Cc) 50 per gallon annual demand (D) 2000 gallons/year Total Annua Lead time(L) 10 days Days per year 310 Reorder Po Ordering Cost = Co *(D/EOQ) 11,401.75 Carrying Cost = Cc *(EOQ/2) 11,401.75 Minimium Inventory Cost = Ordering Cost + Carryin 22,803.51
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rder Size: Q(opt)=sqrt((2Co*D)/Cc) Optimal order Quantity (EOQ)= 456 al Inventory Cost: Co*(D/Qopt)+Cc*(Qopt/2) minimun total annual inventory cost= $22,804 oint R=d*L d=demand rate/time period Reorder Point 65 d= 6.45
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This note was uploaded on 09/24/2010 for the course BU 628 taught by Professor Dr.tapp during the Spring '10 term at Georgian.

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Homework chapter 16 - order Cost (Co) Annual Demand (D)...

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