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: 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 a. b. C. calculated for EOQ in topic (a) with a lead time of 5 days, calculate the Reorder Point (ROP) and the Inventory

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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**Sumco’s Inventory Management Challenge**

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 Economic Order Quantity (EOQ).

b. Calculate the Annual Ordering Cost, the Annual Holding Cost, and the Total Annual Cost.

c. 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.
Transcribed Image Text:**Sumco’s Inventory Management Challenge** 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 Economic Order Quantity (EOQ). b. Calculate the Annual Ordering Cost, the Annual Holding Cost, and the Total Annual Cost. c. 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.
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