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Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days   Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?   Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:   Quantity   Price 599- 999   2,5$   1000- 1999   2$   > 2000   1,5 $   How should the ordering policy be changed?

Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days   Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?   Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:   Quantity   Price 599- 999   2,5$   1000- 1999   2$   > 2000   1,5 $   How should the ordering policy be changed?

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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Exercise on EOQ and TAIC:

 

Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days

 

Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?

 

Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:

 

Quantity

 

Price

599- 999

 

2,5$

 

1000- 1999

 

2$

 

> 2000

 

1,5 $

 

How should the ordering policy be changed?

 

(Note: questions about ordering policies like this require finding two factors: when to order and how much to order each time.) 

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