Question

2 a) A h tpI ighways maintenance site office need a steady demand for paper supply at nual It is estimated that the cost of processing each the rate of 200 packs per ann is $480 and the cost of holding the paper in stock is $3 per pack per annua, Tabulate the annually holding and ordering costs for this item overa range of ordering intervals and batch sizes (order quantity)7訂'D () What is the economic batch size (E0Q) for onders and the m (i) what is the annually cost for stocking item? s and the minimum n빚 A )- (5 marks) Total cost Holding cost Ordering cost EOQ Order quantity Economic order quantity (i) What would the total volume be if FOUR such site offices were served by the same paper supplier? (hints: assume the holding cost is based on the average annually stock level) (5 marks) Inventor刂醉 a) A highways maintenance site office need a stcady demand for paper supply at oo-the rate of 200 packs per It is estimated that the cost of processing eac order is $480 and the cost of holding the paper in stock is $3 per pack per annual Tabulate the annually holding and ordering costs for this item over a ran ordering intervals and batch sizes (order quantity) (i) What is the ec ge or 6 onomic batch size (E0Q) for arders and the m ,ye(minimum @akr ) annuallycostforstockingitem?廛韻 Total cost Holding cost Ordering cost EOQ Order quantity What would the total volume be if FOUR such site offices were served by the same paper supplier? (hints: assume the holding cost is based on the average annually stock level) (ii) (5 marks)

Answer 1

Given that + A maintenana Site office ned a Ca steady demand fa papes Supply at the sae of 2oo packs pes annual. It is estimated tha tha cost of Possing o haing each oreler is $480 the Cost the papes t stock is S3 frs pack annual Pes the economic bach Sise fa oess ths atualCast t stecking ten minimum 2DS 2x 200x 480 a52.18 3 a53 Bu thetotal demand es TO Packs Can be otred A maximum of 200 $480 Cost IX 480 a00x3$300 Cost tHolding ciaimun amual Cest f stockug te 480t300 $780

) The tot al Volume be if faun Such site officas the Same papes Suppla Seved by Nlexe Site offas offia sopacks Roopatsy Annual demand f one officas2004 = Total Valume fR 4 9DS axg 00480 505.96 H 3 506 pauts 11