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A firm’s annual usage of flour is 20,000 kilograms. The carrying cost is P5.00 per kilogram while the ordering cost is P100 every time an order is placed; delivery lead time is 2 weeks. If the firm’s safety stock requirement is 100 kilograms, compute for the following (assume that there are 50 working weeks in a year) a. EOQ in units b. Total carrying cost at EOQ c. Total ordering cost at EOQ d. Re-order point Pls provide solutions

A firm’s annual usage of flour is 20,000 kilograms. The carrying cost is P5.00 per kilogram while the ordering cost is P100 every time an order is placed; delivery lead time is 2 weeks. If the firm’s safety stock requirement is 100 kilograms, compute for the following (assume that there are 50 working weeks in a year) a. EOQ in units b. Total carrying cost at EOQ c. Total ordering cost at EOQ d. Re-order point Pls provide solutions

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. A firm’s annual usage of flour is 20,000 kilograms. The carrying cost is P5.00 per kilogram while the ordering cost is P100 every time an order is placed; delivery lead time is 2 weeks. If the firm’s safety stock requirement is 100 kilograms, compute for the following (assume that there are 50 working weeks in a year) a. EOQ in units b. Total carrying cost at EOQ c. Total ordering cost at EOQ d. Re-order point Pls provide solutions
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