In a certain firm, the demand for their product is given as 360. The holding cost was estimated to be K0.80 while the ordering cost was K100 per order. In this firm, there are 250 working days in a year. Required; a. What is the EOQ? b. How many orders should be processed per year? c. What is the expected cycle time? d. What will be the total cost for the inventory?
In a certain firm, the demand for their product is given as 360. The holding cost was estimated to be K0.80 while the ordering cost was K100 per order. In this firm, there are 250 working days in a year.
Required;
a. What is the EOQ?
b. How many orders should be processed per year?
c. What is the expected cycle time?
d. What will be the total cost for the inventory?
ACB firm produces type C fire extinguishers. They make 30 000 of these fire extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for daily usage rate purposes) the annual carrying cost is K15 per handle. The production setup cost is set at K1500 and a daily production rate of 300.
Required;
a) What is the optimal production order quantity?
b) Determine the following;
i. Imax
ii. Average inventory
iii. Number of butches per year
iv. Cycle time
v. Run time
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