Question

1.) answe is a and b please help please me with 2.) the answer is 90. show each step

Consider the saw tooth diagram below, which illustrates the iuventory issues associated with SKU 0104, a small, stamped metal part produced by the ConAm Company, over the last 25 days Please answer the following two questions, based on this saw tooth diagram. Saw Tooth Diagram of SKU 0104 80 60 40 20 Teach horitontal Interval is one day in length) 1. Which of the following statements is (are) true about SKU 01047 3 SKU 0104 has a maximum inventory level of 70 parts. A single order of SKU 0104 apparently lasts ConAM Company 9 days. gr The run time for a single order of SKU 0104 is apparently days. . 2..κ..α 2. ConAm m Company iuscs the order size (Q) which minimizes its combined holding and ordering costs. If ConAm Company can produce SKU 0104 at a rute ot 45 parts a day, wbile demand for SKU 0104 is 10 parts per day, what order size is ConAm Company using? a) 20 b) 60 c) 70 a) 90 e) 405

Answer 1

I max = EPQ * (1-d/p)

where d = demand / day = 10 and p = production/day = 45 and Imax = 70

70 = EPQ * (1-10/45)

EPQ = 70 / 0.7778 = 90