Question

Need help on E, F, and G.

PA 12-3 Joe Birra needs to purchase malt for his... Joe Birra needs to purchase malt for his micro-brew production. His supplier charges $40 per delivery (no matter how much is delivered) and $1.25 per gallon. Joe's annual holding cost is 30% of the price per gallon. Joe uses 200 gallons of malt per week. a. Suppose Joe orders 125 gallons each time. What is his average inventory? gallons (Round your answer to 2 decimal places.) Suppose Joe orders 1000 gallons each time. How many orders does he place with b. orders his supplier each year? How many gallons should Joe order from his supplier with each order to minimize C. gallons the sum ordering and holding costs? (Round your answer to 3 decimal places.) Suppose Joe orders 3000 gallons each time he places an order with the supplier. What is the sum of ordering and holding costs per gallon? per gallon (Round your answer to 2 decimal places.) Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is e. the annual cost of the EOQ expressed as a percentage of the annual purchase cost? If Joe's supplier only accepts orders that are an integer multiple of 1,000 gallons, f. gallons how much should Joe order to minimize ordering and holding costs per gallon? Joe's supplier offers a 3.00% discount if Joe is willing to purchase 8000 gallons or g. more. What would Joe's total annual cost (purchasing, ordering and holding) be if he were to take advantage of the discount?

Answer 1

Giuen, Anueeual demand (D)200xs22 dou00 $40 Order Let (0) olding coat CH)> 03xUar Prie o.375 :1=O3 x 1.25 E) Lalutahin Eoa first- Eop 2 1040ox 40 2XDX O 0.375 H (489, SI9 Now Anuual drder tholdif Cost 10400 X4y0 t(489.S19 x0.375S Dxo Q XH 11 2- 2. 1489.519 S$8.57 11 Now, Anuual Puchase Cost Dx Unir Pne 2 # 73000 l0400 x 25F Purchaae cost Annuol Eoa cont ao 92977 13000 lie hetwern looo & 2000 8148. 519 As 10o0 200o ordor we chack total Lost tieo

603.5 TC 1000 x0.37S (0400 x4o + 10o0 l000 -582 lo400 X40十2000 X0-375コ てし2000 2 2000 603.5 7885キ to -Since minimige Cost hence gacton 2000 enclar Unt Pria o.97x /-25 4 1.2/21 Takiy 9- -8000 Total ordter t hotdiy Pnchase pichase cost 10400 x40 + 8000 x 0.3 x 2/25 + (o400 X I-2/25 2 4 14/7