Chapter%205%20Problems

# Chapter%205%20Problems - EIN6336...

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Click to edit Master subtitle style  2/16/11 EIN 6336  Advanced Production & Inventory Control

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2/16/11 A manufacturing firm in Calgary produces an item  in a three-month time supply.  An analyst,  attempting to introduce a more logical approach to  selecting run quantities, has obtained the following  estimates of characteristics of the item: D = 4000 units/yr A = \$5 v = \$4 per 100 units r = 0.25 \$/\$/yr Problem 5.4
2/16/11 a.  What is the EOQ? Q = sqrt{2*5*4000/(0.04*0.25)} = 2000 b.  What is the time between consecutive  replenishments of the item when the EOQ is  used? T = Q/D = EOQ/D = 2000/4000 = 0.5 yr c.  The production manager insists that the A = \$5  figure is only a guess.  Therefore, he insists on  using his simple three-month supply rule.  Indicate Problem 5.4

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2/16/11 Part C. The EOQ at A = \$5 is 2000.  TRC(2000) = A*4000/2000
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## This note was uploaded on 02/15/2011 for the course EIN 6336 taught by Professor Staff during the Spring '08 term at University of Florida.

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Chapter%205%20Problems - EIN6336...

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