ReidCh12Sol

# ReidCh12Sol - Total cost/year = 2160 937.50 = \$3097.50 b...

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Ch 12: Inventory Management Problem 12: a. EOQ = H DS 2 = 5 ) 10 )( 1560 )( 2 ( = 79 units b. Total annual cost = (79/2)(5) + (1560/79)(10) = \$197.50 + \$197.47 = \$394.97 c. Reorder point = R = dL = (1560 bags/year)(1 year/52)(1 week) = 30 units Problem 16: Current total annual costs = H Q 2 + Q D S = 2 ) 650 ( (3) + 650 ) 52 150 ( x (20) = \$1215 Problem 22: a. EOQ = H DS 2 = 30 . 0 ) 10 )( 250 8 )( 2 ( x = 365.1 b. R = dL + Z σ = 16 + (1.88)(3) = 21.64 or 22 tapes c. SS = Z σ = (1.88)(3) = 5.64 units d. R = dL + Z σ = 16 + (2.33)(3) = 22.7 units or 23 tapes e. SS = Z σ = (2.33)(3) = 6.99 units Problem 25: a. ( Note: Answer in textbook is wrong) Demand/year = (75000 x 12/50) = 18000 bags Setup cost/year = (18000 x 300/2500) = \$2160 Inventory holding cost/year = (2500/2) x 3 x (1 – 18000/24000) = \$937.50

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Unformatted text preview: Total cost/year = 2160 + 937.50 = \$3097.50 b. See textbook (p. 641); EPQ = 3795 c. Look under part b in textbook (p. 641); Total cost /year = \$2846.42 d. Penalty cost/year = 3097.50 – 2846.42 = \$251.08 Problem 29: a. 08 . / 60 24000 2 * x x Q = = 6000 Total cost/month = (24000 x 60/6000) + (6000 x 0.08/2) = \$480 Current cost/month = (24000 x 60/5000) + (5000 x 0.08/2) = \$488 Penalty/month = 488 – 480 = \$8 b. Q* = 3000, S = ? 08 . / 24000 2 3000 xS x = , so 24000 2 08 . ) 3000 ( 2 x x S = = \$15 So ordering cost needs to be reduced by \$45. (\$60 - \$15) c. 08 . / 30 24000 2 * x x Q = = 4243...
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## This note was uploaded on 11/04/2011 for the course DS 412 taught by Professor Eng during the Fall '07 term at S.F. State.

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ReidCh12Sol - Total cost/year = 2160 937.50 = \$3097.50 b...

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