Question No.1 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics....

Question No.1

An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The

annual demand is approximately 1500 batteries. The supplier pays 25 R.O for each battery

and estimates that the annual holding cost is 30% of the battery's value. It costs

approximately 30 R.O to place an order. The supplier currently orders 125 batteries per

month.

a. Determine the EOQ.

b. How many orders will be placed per year using the EOQ?

c. Determine the total cost for the current order quantity.

d. Determine the total inventory cost for the EOQ, How has ordering cost changed?

Question No2:

Find EOQ if annual demand is 5500 cases of Coco cola and fixed ordering cost is 15 R.O per

order and purchase cost is 3 R.O per case and holding cost is 25% of value of inventory per year.

....Please Solve 2 Question must send .. thank you very much

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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