2. QUANTITATIVE (choose 2 of 3) - Using the data below for a widget find the EOQ (Q*), reorder point (R) and the total annual cost (TC) associated with the economic order quantity, and the reorder point. Draw a picture that shows inventory level over time (that is, the “saw tooth" pattern we showed in class) clearly showing L, EOQ (same as Q*) and R (assuming no variation in demand). Annual Demand D: 16,000 units and constant (no variation, in demand ) 52 weeks/year $120/order Weeks Operating: Ordering Costs C,: Holding Costs C, $3/unit/year (20% of $15 item cost) Lead-Time: 1.5 weeks After calculating costs, EOQ and R, answer the following based on your student number: If Y is odd - if you ordered a quantity (Q) that was 20% less than the EOQ (Q*), would the holding cost be higher or lower? (no calculation needed, simply say “higher" or “lower")
2. QUANTITATIVE (choose 2 of 3) - Using the data below for a widget find the EOQ (Q*), reorder point (R) and the total annual cost (TC) associated with the economic order quantity, and the reorder point. Draw a picture that shows inventory level over time (that is, the “saw tooth" pattern we showed in class) clearly showing L, EOQ (same as Q*) and R (assuming no variation in demand). Annual Demand D: 16,000 units and constant (no variation, in demand ) 52 weeks/year $120/order Weeks Operating: Ordering Costs C,: Holding Costs C, $3/unit/year (20% of $15 item cost) Lead-Time: 1.5 weeks After calculating costs, EOQ and R, answer the following based on your student number: If Y is odd - if you ordered a quantity (Q) that was 20% less than the EOQ (Q*), would the holding cost be higher or lower? (no calculation needed, simply say “higher" or “lower")
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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please answer both the questions within 30 minutes. make sure u solve both the parts else i will give negative ratings for sure.
Transcribed Image Text:2. QUANTITATIVE (choose 2 of 3) - Using the data below for a widget find the EOQ
(Q*), reorder point (R) and the total annual cost (TC) associated with the economic
order quantity, and the reorder point. Draw a picture that shows inventory level over
time (that is, the “saw tooth" pattern we showed in class) clearly showing L, EOQ (same
as Q*) and R (assuming no variation in demand).
16,000 units and constant
(no variation, in demand )
52 weeks/year
$120/order
$3/unit/year (20% of $15
item cost)
Annual Demand D:
Weeks Operating:
Ordering Costs C,:
Holding Costs C,
Lead-Time:
1.5 weeks
After calculating costs, EOQ and R, answer the following based on your student number:
b. If Y is odd - if you ordered a quantity (Q) that was 20% less than the EOQ (Q*),
would the holding cost be higher or lower? (no calculation needed, simply say
"higher" or “lower")
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