For an EOQ ordering quantity of 750 units, an ordering cost of $5 per order, a...

For an EOQ ordering quantity of 750 units, an ordering cost of $5 per order, a holding cost of $10 per unit per year, and an annual demand of 900 units, what is the annual total cost for this value of Q?

Expert Solution

keosha answered 2 years ago

Economic Order Quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering...

Economic Order Quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering costs. 1) What's the impact of a positive lead time on EOQ? 2) Can supply chain managers in fast-fashion industries apply the EOQ model to manage their inventories? If yes, how? If no, why?

1. A. (EOQ) Calculate the EOQ quantity given: a. Fixed cost per order of $40 b....

1. A. (EOQ) Calculate the EOQ quantity given: a. Fixed cost per order of $40 b. holding cost per inventory unit of $2.00 c. estimated demand for inventory of 200,000 Solve EOQ using the information listed above: B. Calculate the total cost associated the EOQ amount calculated in part A: C. The company wants to keep Safety Stock of an additional; 8 units. Calculate the cost associated with the safety stock and the total cost of the EOQ amount...

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per...

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $22.5 per order. The revised EOQ is: a) three times as large. b) one-third as large. c) nine times as large. d) one-ninth as large. e) half as large. f) cannot be determined.

If EOQ = 360 units, order costs are $5 per order, and carrying costs are $0.20...

If EOQ = 360 units, order costs are $5 per order, and carrying costs are $0.20 per unit, what is the usage in units? How many orders will be placed in a year if there are 250 working days per year and lead time is 5 days?

One company operates 300 days per year. The economic order quantity (EOQ) is 250 units. Annual demand is 5000 units.

One company operates 300 days per year. The economic order quantity (EOQ) is 250 units. Annual demand is 5000 units. The expected time between orders will be: 15 days20 days1.2 days16.6 daysNone of the above

Using the EOQ model, if a firm's order quantity is 500 units and its annual holding...

Using the EOQ model, if a firm's order quantity is 500 units and its annual holding cost is greater than its annual setup cost, then what can we say about the optimal order quantity? A. Optimal order quantity = 500 units B. Optimal order quantity < 500 units C. Optimal order quantity > 500 units D. Not enough information is given to answer the question

1. Consider the basic EOQ model (no uncertainty). Optimal order quantity (Q ∗) is 1,800 units....

1. Consider the basic EOQ model (no uncertainty). Optimal order quantity (Q ∗) is 1,800 units. What is the average inventory level (I ∗)? a. 900 units b. 1,800 units c. 600 units d. 1,000 units e. 3,600 units 2. Consider the basic EOQ model (no uncertainty). Annual holding cost (AHC) is $2,400. Find annual ordering cost (AOC). a. Cannot be answered because there is missing information b. AOC=$0, since there is no uncertainty c. $1,200, since AOC=AHC/2 at economic...

In inventory management, economic order quantity (EOQ) is the order quantity that minimizes the total holding...

In inventory management, economic order quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering costs. It is one of the oldest classical production scheduling models. Requirements: Discuss the EOQ Model using an quantitative example computation with interpretation of the solution. 2. The B. N. Thayer and D. N. Thaht Computer Company sells a desktop computer that is popular among gaming enthusiasts. In the past few months, demand has been relatively consistent, although it does fluctuate...

Ricky Orange’s annual demand is 12 500 units. Ordering cost is RO. 100 per order. Holding...

Ricky Orange’s annual demand is 12 500 units. Ordering cost is RO. 100 per order. Holding cost is estimated at 20% of product cost which is RO. 50 per unit. The firm works for 50 weeks per year and each week has 5 days. Calculate: a) Economic order quantity. b) Number of orders to be placed per year. c) Daily usage quantity. ...

Find the EOQ, the total annual cost associated with the economic order quantity, the reorder point,...

Find the EOQ, the total annual cost associated with the economic order quantity, the reorder point, number of orders per year and the time between orders. Annual Demand 15,600 units Weeks Operating 52 weeks/year Set up Cost $60/order Holding rate 20% Unit cost $80 /unit Lead-Time 5 weeks

Question