Quiz[2]- F08_Key

Quiz[2]- F08_Key - MGMT 460 - Fall 2008 Quiz No. 2:...

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1 MGMT 460 - Fall 2008 Quiz No. 2: 10/22/2008 Print your name (Last name first): ___ _____________ Class time:__________ Last three digits of PUID: _________ Question 1 : Please add up the last three digits of your PUID. Total = _______ Question 2 : (5 points) – Demand for a product satisfying EOQ assumptions is 8000 units / year. Purchase price is $40 /unit. Ordering cost is $100. For unit annual holding cost see below. Suppose your current policy is to order every 3 months. How much will you save annually if you order optimal quantity (round off optimal number within 5%, if needed)? Sum of the last 3 digits of your PUID 0 – 10 11 –20 21 – 29 Unit annual holding cost 1 4 9 Q0 (unit) 1260 630 420 AIC ($) 1264.92 2529.84 3794.62 AIC($) under current policy 1400 4400 9400 Savings ($) 135.08 1870.16 5605.38 0 2 2 8000 100 Given order size Q, AIC=DS/Q Q / 2 DS Q HH H ×× == + H=1, 4, or 9 depending on your answer in Question 1. Under current policy: you order 4 times a year, so Q=8000/4=2000 units
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Quiz[2]- F08_Key - MGMT 460 - Fall 2008 Quiz No. 2:...

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