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Q2. AutoSupport Manufacturing, Inc. manufactures components used in the automotive industry. AutoSupport purchases parts for use in its manufacturing operation from a variety of different suppliers. Let us consider a particular autopart for which the annual demand is 1000 units, the ordering cost is $150 per order, and the annual holding cost rate is 20%. AutoSupport Manufacturing operates 330 days per year and the lead time for an order is 4 days. One particular supplier provides the part where the assumptions of the EOQ model are realistic except for the fact that they offer a per unit discount based upon the quantity ordered as shown below: Discount Order Size Discount Unit Category (units) 0 to 999 per unit $0.00 Cost 1 $100.00 1000 to 1999 $10.00 $90.00 2000 and 3 over $15.00 $85.00 a. What should be their EOQ? (Choose one: 123, 146, 150, 1000, 2000): b. What is the Annual Inventory Holding Cost (H)? c. What is the Total Annual Cost (TC)? d. What is their cycle time T, in days?

Q2. AutoSupport Manufacturing, Inc. manufactures components used in the automotive industry. AutoSupport purchases parts for use in its manufacturing operation from a variety of different suppliers. Let us consider a particular autopart for which the annual demand is 1000 units, the ordering cost is $150 per order, and the annual holding cost rate is 20%. AutoSupport Manufacturing operates 330 days per year and the lead time for an order is 4 days. One particular supplier provides the part where the assumptions of the EOQ model are realistic except for the fact that they offer a per unit discount based upon the quantity ordered as shown below: Discount Order Size Discount Unit Category (units) 0 to 999 per unit $0.00 Cost 1 $100.00 1000 to 1999 $10.00 $90.00 2000 and 3 over $15.00 $85.00 a. What should be their EOQ? (Choose one: 123, 146, 150, 1000, 2000): b. What is the Annual Inventory Holding Cost (H)? c. What is the Total Annual Cost (TC)? d. What is their cycle time T, in days?

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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Q2. AutoSupport Manufacturing, Inc. manufactures components used in the automotive industry. AutoSupport purchases parts for use in its manufacturing operation from a variety of different suppliers. Let us consider a particular autopart for which the annual demand is 1000 units, the ordering cost is $150 per order, and the annual holding cost rate is 20%. AutoSupport Manufacturing operates 330 days per year and the lead time for an order is 4 days. One particular supplier provides the part where the assumptions of the EOQ model are realistic except for the fact that they offer a per unit discount based upon the quantity ordered as shown below: Discount Order Size Discount Unit per unit $0.00 Category (units) 0 to 999 Cost 1 $100.00 1000 to 1999 $10.00 $90.00 2000 and 3 over $15.00 $85.00 a. What should be their EOQ? (Choose one: 123, 146, 150, 1000, 2000): b. What is the Annual Inventory Holding Cost (H)? c. What is the Total Annual Cost (TC)? d. What is their cycle time T, in days?
Transcribed Image Text:Q2. AutoSupport Manufacturing, Inc. manufactures components used in the automotive industry. AutoSupport purchases parts for use in its manufacturing operation from a variety of different suppliers. Let us consider a particular autopart for which the annual demand is 1000 units, the ordering cost is $150 per order, and the annual holding cost rate is 20%. AutoSupport Manufacturing operates 330 days per year and the lead time for an order is 4 days. One particular supplier provides the part where the assumptions of the EOQ model are realistic except for the fact that they offer a per unit discount based upon the quantity ordered as shown below: Discount Order Size Discount Unit per unit $0.00 Category (units) 0 to 999 Cost 1 $100.00 1000 to 1999 $10.00 $90.00 2000 and 3 over $15.00 $85.00 a. What should be their EOQ? (Choose one: 123, 146, 150, 1000, 2000): b. What is the Annual Inventory Holding Cost (H)? c. What is the Total Annual Cost (TC)? d. What is their cycle time T, in days?
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