Question: 4 2x6 = 12 marks (a)-. An industrial distributor purchases 9,000 boxes monthly to transport goods. Assume 300 working days/year. The information available for some of costs elements are given as: Unit (box) price = $12.5 Vunit, - Ordering cost = 8,750 /order -Inventory holding cost = 2.5% of the unit price /month -Interest rate including Insurance 18% compounded annually. Calculate: The optimum order quantity and Draw the inventory model, 2- The optimum number of orders per year and the cycle time, 3- The minimum total annual inventory cost, 4- The reorder point if the lead time is 12 days. How (b)- Determine the break-even points for the three alternatives shown in the ne table. you can choose the preferable one by using two methods: Mathematical solution, and 2- Graphical Solution. Alternative Centre Lathe Turret Lathe Automatic Lathe Depreciation (S/year) Maintenance Cost (S/year) 60 x 10³ 40 x 10³ 220 x 103 530 x 10³ 30 x 10³ 20 x 10³ Variable Cost (S/unit) 50 25 10 2. F

Question: 4 2x6 = 12 marks (a)-. An industrial distributor purchases 9,000 boxes monthly to transport goods. Assume 300 working days/year. The information available for some of costs elements are given as: Unit (box) price = $12.5 Vunit, - Ordering cost = 8,750 /order -Inventory holding cost = 2.5% of the unit price /month -Interest rate including Insurance 18% compounded annually. Calculate: The optimum order quantity and Draw the inventory model, 2- The optimum number of orders per year and the cycle time, 3- The minimum total annual inventory cost, 4- The reorder point if the lead time is 12 days. How (b)- Determine the break-even points for the three alternatives shown in the ne table. you can choose the preferable one by using two methods: Mathematical solution, and 2- Graphical Solution. Alternative Centre Lathe Turret Lathe Automatic Lathe Depreciation (S/year) Maintenance Cost (S/year) 60 x 10³ 40 x 10³ 220 x 103 530 x 10³ 30 x 10³ 20 x 10³ Variable Cost (S/unit) 50 25 10 2. F

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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