Suppose that Westside Auto, a manufacturer of automobile generators with D = 13,000 units per year,...
Suppose that Westside Auto, a manufacturer of automobile generators with D = 13,000 units per year, Ch = (2.00) (0.20) = $0.40, and Co = $25, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $5 per unit per year. Identify the following. (Assume 250 working days per year. Round your answers to two decimal places.)
(a)Minimum cost order quantity
(b)Maximum number of backorders
(c)Maximum inventory
(d)Cycle time (in days)-----days
(e)Total annual cost (in $)------$
Apply the EOQ model to the following quantity discount situation for which
D = 600
units per year,
Co = $35,
and the annual holding cost rate is 20%. (Round your answers to the nearest integer.)
| Discount Category |
Order Size | Discount (%) |
Unit Cost | Order Quantity |
|---|---|---|---|---|
| 1 | 0 to 99 | 0 | $10.00 | Q1 = |
| 2 | 100 or more | 3 | $9.70 | Q2 = |
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Suppose that Westside Auto, a manufacturer of automobile
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