Inventory Problems Set 2 answers

Inventory Problems Set 2 answers - 6c EOQ policy saves...

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Answers to Homework 4/5/11 1a) 80 rolls 1b) inventory carrying costs = $6000/year Annual ordering costs = $6000/year TAC = $12,000/year 1c) $1,920,000/year 1d) .0416 years 1e) .0416 years 4a) 420 cases 4b) Inventory holding cost $885.60/year Annual ordering cost = $885.71 / year TAC = $1,771,31/year 4c) 3 days 4d) 240 units on hand 6a) 271 cases 6b) TAC $1,473.78/year t= 6.78 days ROP = 120 cases
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Unformatted text preview: 6c) EOQ policy saves $797.72 / year 7) The offer saves $230,58 per year as compared to the EOQ policy of ordering 271 cases each time, and saves $1028.30 per year as compared to current policy of ordering 100 cases each time. 9a) 2500 knives 9b) Setup cost = $800/year Inventory holding costs = $800/year TAC = $1600/year 9c) 50 days...
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