quiz EOQ
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School
Algonquin College *
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Course
2303
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
Pages
3
Uploaded by PresidentRabbitMaster662
Calculate
Economic Order Quantity
(EOQ) from the
following:
Annual consumption 8,300 units
Cost of ordering $60
Carrying costs $2
Round your answer to 2 decimal places
Your Answer:
Question 1 options:
Answer
Question 2
(1 point)
ABC Inc produces fertilizer to sell to wholesalers. One raw
material: calcium nitrate is purchased from a nearby supplier
at $22.50 per ton. ABC Inc estimates it will need 5,750,000
tons of calcium nitrate next year.
The annual carrying cost for this material is 40% of the unit
cost, and the ordering cost is $530.
What is the most economical order quantity? Round your
answer to 2 decimal places.
Your Answer:
Question 2 options:
Answer
Question 3
(1 point)
Calcium nitrate is purchased from a nearby supplier at $22.50
per ton. ABC Inc estimates it will need 5,750,000 tons of
calcium nitrate next year. The annual carrying cost for this
material is 40% of the acquisition cost, and the ordering cost
is $520.
What is the average inventory?
Do not round your EOQ; round your average inventory answer
to 2 decimal places.
Your Answer:
Question 3 options:
Answer
Question 4
(1 point)
The following details are provided: Annual demand is 90,000
units, cost per order is $74, holding costs are 10% of the cost
of the unit and each unit costs $50. The business operates 314
days per year. The delivery lead time is 2 days.
Calculate the ROP. NOTE: round only your ROP answer to 2
decimal places.
Your Answer:
Question 4 options:
Answer
Question 5
(1 point)
The following details are provided: Annual demand is 9,500
units, cost per order is $55, holding costs are estimated to be
$16 per unit per year. The business operates 300 days per
year. The delivery lead time is 2 days.
Calculate the number of orders. NOTE: round only your ROP
answer to 2 decimal places.
Your Answer:
Question 5 options:
Answer
Question 6
(1 point)
A machine shop that operates 250 days per year uses 2,200
brackets during the course of a year. These brackets are
purchased from a supplier 90 kilometers away. The lead time
is 2 days. The following information is known about the
brackets: holding cost per bracket per year is $1.50 and the
per order costs is $18.75
Calculate the annual cost to manage the inventory. NOTE:
round only your final answer to 2 decimal places.
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