heizer10e_ch12_hw

# heizer10e_ch12_hw - Additional Homework Problems to...

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to accompany CHAPTER 12: Inventory Management Additional Homework Problems 12.41 Barbara Flynn’s company has compiled the following data on a small set of products: Item Annual Demand Unit Cost A 100 \$300 B 75 100 C 50 50 D 200 100 E 150 75 Perform an ABC analysis on her data. 12.42 Judy Stamm opened a new beauty-products retail store. There are numerous items in inventory, and Judy knows that there are costs associated with inventory. However, because her time is limited, she cannot carefully evaluate the inventory policy for all products. Judy wants to classify the items according to dollars invested in them. The following table provides information about the 10 items that she carries: Item Number Unit Cost Demand (units) E102 \$4 800 D23 \$8 1,200 D27 \$3 700 R02 \$2 1,000 R19 \$8 200 S107 \$6 500 S123 \$1 1,200 U11 \$7 800 U23 \$1 1,500 V75 \$4 1,500 Use ABC analysis to classify these items into categories A, B, and C. 12.43 If D = 1,000 per year, S = \$62.50 per order, and H = \$.50 per unit per year, what is the economic order quantity? 12.44 If the economic order quantity = 300, annual demand = 8,000 units, and order costs = \$45 per order, what is the holding cost? 1

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12.45 George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of \$45 per unit. Each order placed costs George \$150. He operates 300 days per year and has found that an
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heizer10e_ch12_hw - Additional Homework Problems to...

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