Week 3_EOQ Activity.xlsx - Economic Order Quantity Demand = Cost per item = $ A= $ B= $ C= EOQ value = $ EOQ units = 10,000 Annual Requirements or

Week 3_EOQ Activity.xlsx - Economic Order Quantity Demand =...

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Economic Order Quantity Demand = 10,000 Annual Requirements or Demand Cost per item = $ 150.00 Purchase cost per Unit A = $ 1,500,000 Annual Usage, in dollars B = $ 125.00 Administrative costs per order of placing the order C = 28% Carrying costs of the inventory (expressed as an annual percentage EOQ value = $ 36,596.25 (exact value) EOQ units = 244 (rounded number) Using this inventory management system, every time that you need to order this item, you buy EXTRA: What if your supplier requires you to purchase only in Cases of 60 units each? How much extra Hint -- use the the table on the "Chart data" tab for the computation of "Total Annual Cost" for When to order is another question…. See the next assignment to compute the Reorder Point.
e of the inventory dollar value)y EOQ of them!a would this cost in a year?r your EOQ and the best Case Lot.$50,000 $100,000 $150,000 $200,000 $250,000 Inventory Costs 9800 10000 10200 10400 10600 $- H O T Quantity per Order Annual Cost
Holding Cost Ordering Costs Total Cost
Demand = 10,000 Annual Requirements or Demand A = 1500000 Annual Usage, in dollars

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