Homework chapter 16

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

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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
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 + Carrying 22,803.51

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der 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
Days per year 365 Optimal Ord Demand (d) 180 pounds per day Q(opt)=sqrt Carrying cost (Cc) 12 per day Produce (p) 250 pounds per day Minimum to Production Process(Co) 125 =Co*(D/Q)+ D=365*180 65700

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der Size t((2Co*D)/Cc*(1-(d/p))) \$2,210.97 otal Inventory Cost +Cc*(Q/2)*(1-(d/p)) \$7,428.86
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