Q2) Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. And What are the costs of each plan, including the holding cost of any inventory left over after month 7? What technique performance is better. Month 1 2 3 4 5 6 7 Requirement 400 150 200 150 100 150 250 Answer: (a) The monthly holding cost = $2/month Average monthly demand = ??? units The EOQ = ??? units Total inventory held = ??? units Setup costs = $??? Holding cost = $???? Total cost = $???? (b) POQ Interval = ?.??, round to # month. Total inventory held = ? units Setup costs = $??? Holding cost = $? Total cost = $???
Q2) Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. And What are the costs of each plan, including the holding cost of any inventory left over after month 7? What technique performance is better.
|
Month |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
Requirement |
400 |
150 |
200 |
150 |
100 |
150 |
250 |
Answer:
(a) The monthly holding cost = $2/month
Average monthly demand = ??? units
The EOQ = ??? units
Total inventory held = ??? units
Setup costs = $???
Holding cost = $????
Total cost = $????
(b) POQ Interval = ?.??, round to # month.
Total inventory held = ? units
Setup costs = $???
Holding cost = $?
Total cost = $???
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