Question

A store faces demand for one of its popular products at a constant rate of 2,400 units per year. It costs the store $70 to process an order to replenish stock and $20 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 12 working days after an order is placed. The store buys the product for $90 per unit and sells it for $160 per unit. At the moment the store uses an order quantity of 160 units. Assume EOQ model assumptions are satisfied and 300 days a year. If there are two blank boxes in any question, then you must put one of the following words in the second box units, dollars, days, year, orders per year, dollars per year, units per order. Answer the following questions (you should not use any commas in your answer) Use at least 4 decimals in your calculation and answers. You must solve questions (1) through (6) assuming the store uses the current order quantity. Questions [8] through (10) must be solved using the optimal order quantity

Answer 1

160 11 No. of order – 2400 - 115prders per you 2) Ang Iwerty Anal - 160 - funits 3) The length of sweetung Cipple - 160 - 120 dags 2000 4 6) 7 Annual ordeng tar = 15x to 1050 dollar Annent Haldy ist = 160x20=1600 dallas Time bewaan two orders - Roldays Annual puebre cost - 90x2400 = 216,000 dolling Optimal ordan gunting = 1/24.co - 2x 240*70 s) 20 9) Ophiud haldy cost 129 61 x = 112.95.1 dollag 10) optinal ordes - 2400 - 18:51 lg orden 12.6)