Lab Practice_1 revised

Lab Practice_1 revised - PRACTICE EXERCISE Economic Order...

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Economic Order Quantity - PRACTICE EXERCISE SCM 300 Below are some the key figures important in your analysis: Wholesale Price $ 200.00 Retail Price $ 300.00 Annual Per Unit Holding Costs are estimated at 30% of the wholesale cost. D (annual demand) = 13000 H (annual holding costs) = $60.00 C = $200.00 S (fixed costs per order) = $400.00 Using Present Lot Size (Q = 1100) Calculate the time between orders? Do Not Round. 4.40 weeks How many orders per year are being placed annually? Do Not Round. 11.8 Orders per year According to the information supplied, what is the present annual inventory cost? (In other words, using their present lot size what is the annual inventory cost?) Also, separately identify, the annual cost of purchasing the inventory, the annual holding cost (AHC) and annual ordering cost (AOC). DC = $ 2,600,000 AOC = $ 4,727.27 AHC = $ 33,000 TC = $ 2,637,727.27 Using the Economic Order Quantity (Q=EOQ) Calculate EOQ. (USE A WHOLE NUMBER, NO DECIMALS) EOQ =
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This note was uploaded on 03/06/2011 for the course SCM 300 taught by Professor D during the Spring '07 term at ASU.

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Lab Practice_1 revised - PRACTICE EXERCISE Economic Order...

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