Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8 per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions: a. Calculate the new EOQ. Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost. ) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory b. С.
Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8 per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions: a. Calculate the new EOQ. Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost. ) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory b. С.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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A, B, C please
![Problem #1- Sumco Pump Company-Modified, from textbook page #192.
Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8
per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions:
a.
Calculate the new EOQ.
Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost.
) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount
calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory
b.
С.
Position. Guidance: review Procomp's example on textbook page #195.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd3c27d4-b808-4d72-a714-fa9a685b9143%2Faabec9d4-c6c8-4d9b-b4a8-4316f0bd218a%2Fquekd2o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem #1- Sumco Pump Company-Modified, from textbook page #192.
Sumco's annual demand is expected to increase from 1,000 units to 1,555 units, the ordering cost is reduced to $8
per order and the average carrying cost per unit per year remains the same at $0.50. Under these new conditions:
a.
Calculate the new EOQ.
Calculate the Annual Ordering Cost, the Annual Holding Cost and the Total Annual Cost.
) If Sumco has a daily demand of 10 units and assuming that they will be ordering the exact amount
calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory
b.
С.
Position. Guidance: review Procomp's example on textbook page #195.
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