N7 4+5 pleaseFor a given product, the order placement cost is $5, the holdingcost per unit per year is $10, and annual demand is 1,600 units. Ifthe EOQ is used, please answer the following questions: (pleaseshow calculations to reach your answer)1. what's the economic order quantity?2. what's the total annual logistics costs?3. How many orders will be placed over the course of a year?4. How much time elapses between order placements?5. The purchasing manager has been negotiating with thesupplier, and the latter has agreed to the following terms: Lowerorder placement costs ($4 instead of $5) and higher holding costs($12 instead of $10). Do you think this a good deal? Why or whynot?

Given- Annual Demand = 1600 Units Ordering cost (S) = $5 Holding cost (H) = $10

Answered: For a given product, the order…

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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Additional Question. The XYZ steel company must determine a policy for ordering coal to operate 15 converters. The ordering cost is $85/order and the cost of holding coal is 15% of the purchasing cost. The XYZ has a contract to obtain the coal for $14 per ton for the coming year. Each converter requires exactly 8 tons of coal per day to operate, and the firm operates 300 days per year. a. Determine the optimal quantity of coal to receive in each order. b. Determine the total inventory-related cost associated with the optimal ordering policy c. Optimal number of orders to place per year and number of operating days between orders, based on the optimal ordering. d. The XYZ is now considering to the following discount policy provided by supplier: Order Quantity (tons) 1,000 - 1,999 Price per ton $14 $12 $10 2,000 - 2,999 3000+ Please help the XYZ to determine the amount the firm should order.
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Question 14 Public owners are expected to negotiate bid prices submitted by contractors in an attempt to maximize the value of construction services acquired. True O False

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