MGMT 361 - Key MGMT 361 HW 03 40 Points Question 1[16...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HW03-Key-F10.doc 1 MGMT 361: HW 03 40 Points Question 1: [16 points: 4 + 4 + 8] For a product satisfying EOQ assumptions, annual demand is 5400 units, holding cost per unit per year is $5 and the ordering cost is $110. (a) For the lot sizes 200, 400, 600 and 800 calculate annual inventory cost using a table similar to the one in Example 1.1. What is the best lot size out of these four lot sizes? (b) Draw the graphs of annual cost for holding, ordering and annual inventory cost vs. lot size (for lot sizes between 100 and 1000). Use EXCEL to prepare the graph. Label the graph appropriately. Use original information in the first two lines to answer the following (c) Calculate the optimal lot size , based on the information above ( round off optimal Q 0 to the closest multiple of 100 ). 1. What are the corresponding annual inventory costs ? 2. What is the best policy if the lead-time ( LT ) is 2 months? 3. Suppose your order must be a multiple of 150 (that is, each box contains 150 units). What should be the “optimal” ordering policy in this case (with LT = 2 months)?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern