(a) For a product managed according to the Economic Order Quantity method, the table shows monthly demand rates for the last two years (2020 and 2019). The product is bought at 30 OMR per unit. Setup cost is 150 OMR and holding cost is 10 % of the purchase price. Calculate the following (i) Mean Demand (ii) EOQ (iii) No of orders in one year (iv) Time between orders (v) Total inventory cost

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Chapter1: Making Economics Decisions
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(a) For a product managed
according to the Economic Order
Quantity method, the table shows
monthly demand rates for the last two
years (2020 and 2019). The product is
bought at 30 OMR per unit. Setup cost
is 150 OMR and holding cost is 10 % of
the purchase price. Calculate the
following
(i) Mean Demand (ii) EOQ (iii) No of orders
in one year (iv) Time between orders
(v) Total inventory cost
Year JanFebMarchAprMay JuneJuly AugSepOctNovDec
2019 95 85 125
125 135 105 95 135 110 140120 115
2020135145 65
85 145 135 105 85 120 90 155 160
Transcribed Image Text:(a) For a product managed according to the Economic Order Quantity method, the table shows monthly demand rates for the last two years (2020 and 2019). The product is bought at 30 OMR per unit. Setup cost is 150 OMR and holding cost is 10 % of the purchase price. Calculate the following (i) Mean Demand (ii) EOQ (iii) No of orders in one year (iv) Time between orders (v) Total inventory cost Year JanFebMarchAprMay JuneJuly AugSepOctNovDec 2019 95 85 125 125 135 105 95 135 110 140120 115 2020135145 65 85 145 135 105 85 120 90 155 160
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