Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Chap 6 EOQ DISCOUNT

    Uploaded by

    Nguyên Bảo

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Chap 6 EOQ DISCOUNT

    Uploaded by

    Nguyên Bảo
    7 views2 pages

    Original Title

    Chap-6-EOQ-DISCOUNT

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views2 pages

    Chap 6 EOQ DISCOUNT

    Uploaded by

    Nguyên Bảo

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Logistic and Supply Chain Management (BA022IU)

    TUTORIAL MATERIAL | Powered by Ky Duyen Nguyen

    Logistic and Supply Chain Management (BA022IU)


    TUTORIAL MATERIAL | Powered by Ky Duyen Nguyen

    CHAP 6: INVENTORY
    Quantity Discounts - Example

    Problem 1:
    EOQ analysis as an inventory manager you must decide on the order quantity for an item. Its
    annual demand is 2,500 units. Ordering costs are $30 each time an order is placed, and the
    holding cost is 25% of the per-unit price. Your supplier provided the following price schedule
    (show all work)
    1 – 699: $15.00
    700 - 1999 $14.25
    2000 - >2000 $13.50
    a) Annual Demand = 2,500. Calculate the EOQ for each price point
    b) Holding cost = 25%. Calculate the Total Acquisition Cost for each price point
    c) Ordering cost = $30. What is the best option?

    Problem 2:
    The retailer of Heat International is negotiating the air- conditioning units’ respective
    purchase cost along with the quantity ordered.
    Heat International offers the discounts summarized in the table provided below:

    The total demand for air-conditioning units is 6,500 units. Ordering cost is €50 and the
    annual inventory holding cost is estimated 25% of the unit’s price.
    How many air-conditioning units should the retailer order to minimize its total annual cost?

    Problem 3:
    Mason has introduced a new product, the Mason Drone. Its expected annual demand is 6,500
    units. The cost to purchase each drone for Mason varies according to the quantity discount
    schedule shown below. The ordering cost is $80 per order, and the annual inventory holding
    cost rate is 25% of item cost. 151 to 300 301 and up S300,00 per unit $285 per unit $280 per
    unit 1 to 150 a. (7 pot should the order quantity be in order to minimize the total annual
    inventory cost? b. (1 points)What is the total annual inventory cost at that quantity?

    Problem 4:
    A product has an annual demand of 15,055 units. The unit price is $62 each and the ordering
    cost is $56. The store uses a yearly inventory holding cost of 25% of the unit price. They
    have decided to order 57 units every time they order. How many orders per year will they
    make?

    Problem 5:
    Logistic and Supply Chain Management (BA022IU)
    TUTORIAL MATERIAL | Powered by Ky Duyen Nguyen

    A product has an annual demand of 15,127 units. The unit price is $74 each and the ordering
    cost is $48. The store uses a yearly inventory holding cost of 31% of the unit price. The
    company has decided to order 79 units every time they order and to order 85 times per year.
    There are 250 business days in a year. How many days should they wait between orders?

    Problem 6:
    A product has an annual demand of 16,122 units. The unit price is $58 each and the ordering
    cost is $99. The store uses a yearly inventory holding cost of 33% of the unit price. They
    have decided to order 78 units every time they order. What is the total annual cost of
    purchasing 78 units per order (purchasing, ordering, and holding)?

    Problem 7:
    If the daily demand follows a normal distribution with a standard deviation of 5 units per day,
    and the lead time is 10 days, calculate the re-order point for a service level of 95% (z score is
    1.65). Assume that there are 250 business days in a year and the annual demand is 1,043
    units.

    You might also like