This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 40 D=75*200=15000 pounds/year S=$16/order H=3/pound/year L=4 days d=75 pounds standard deviation =15/day a) EOQ=400 b) The total aunnal holding costs: THC=(Q/2)*H=(400/2)*3=600 c) Total ordering costs: TOC=(D/Q)*S=(15000/400)*16=600 d) Z=2.33 ss=69.9 ROP=d*L+SS=75*4+69.9=369.9 e) ss=69.9 f) Annual holding costs=(69.9/2)*3=105 g) Z=2.05 SS=61.5 Deceased...
View Full Document
This note was uploaded on 12/03/2011 for the course BUSQOM 1070 taught by Professor Shang during the Spring '09 term at Pittsburgh.
- Spring '09