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Scenario You have been asked by your boss to calculate the Economic Order Quantity (EOQ) for one of the major sub-components used by your firm. You have been provided the following data: The weekly demand for this part is 125 units *52 weeks  The cost of the sub-component is $300. The annual holding cost is 0.5% and the ordering or setup cost is $50. Calculate the EOQ using the data provided above

Scenario You have been asked by your boss to calculate the Economic Order Quantity (EOQ) for one of the major sub-components used by your firm. You have been provided the following data: The weekly demand for this part is 125 units *52 weeks  The cost of the sub-component is $300. The annual holding cost is 0.5% and the ordering or setup cost is $50. Calculate the EOQ using the data provided above

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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Scenario

You have been asked by your boss to calculate the Economic Order Quantity (EOQ) for one of the major sub-components used by your firm. You have been provided the following data:

  • The weekly demand for this part is 125 units *52 weeks 
  • The cost of the sub-component is $300.
  • The annual holding cost is 0.5% and the ordering or setup cost is $50.

Calculate the EOQ using the data provided above

 

Economic Order Quantity 2x DxS EOQ = %3D Н D = Annual demand (units) S= Cost per order ($) C = Cost per unit ($) | = Holding cost (%) H = Holding cost ($) = I x C %3D
Transcribed Image Text:Economic Order Quantity 2x DxS EOQ = %3D Н D = Annual demand (units) S= Cost per order ($) C = Cost per unit ($) | = Holding cost (%) H = Holding cost ($) = I x C %3D
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