Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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...
See similar textbooks
icon
Related questions
Question

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS