The head buyer of a Flat Screen TV wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory costs needed in her analysis. The annual demand is 10,000 units. The cost is Php1000 per unit per year. The production rate is 50 units per day and there are 250 working days per year. Solve the following and show your solution: a. Daily Demand b. Economic Order Quantity C. Production Cycle d. Production Run per year e. Annual Set-up f. Maximum Inventory g. Minimum Inventory h. Average Inventory i. Annual Holding Inventory Total Inventory Cost
The head buyer of a Flat Screen TV wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory costs needed in her analysis. The annual demand is 10,000 units. The cost is Php1000 per unit per year. The production rate is 50 units per day and there are 250 working days per year. Solve the following and show your solution: a. Daily Demand b. Economic Order Quantity C. Production Cycle d. Production Run per year e. Annual Set-up f. Maximum Inventory g. Minimum Inventory h. Average Inventory i. Annual Holding Inventory Total Inventory Cost
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:The head buyer of a Flat Screen TV wants to determine the most optimum inventory practice for the company. She was
able to determine the demand and inventory costs needed in her analysis. The annual demand is 10,000 units. The cost
is Php1000 per unit per year. The production rate is 50 units per day and there are 250 working days per year.
Solve the following and show your solution:
a. Daily Demand
b. Economic Order Quantity
c. Production Cycle
d. Production Run per year
e.
f.
Annual Set-up
Maximum Inventory
g. Minimum Inventory
h. Average Inventory
i.
Annual Holding Inventory
Total Inventory Cost
7
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Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: a. Daily Demand:
VIEWStep 2: b. Economic Order Quantity (EOQ):
VIEWSolution
VIEWStep 3: c. Production Cycle:
VIEWStep 4: d. Production Runs per Year:
VIEWStep 5: e. Annual Set-up:
VIEWStep 6: f. Maximum Inventory:
VIEWStep 7: g. Minimum Inventory:
VIEWStep 8: h. Average Inventory:
VIEWStep 9: i. Annual Holding Inventory Cost:
VIEWStep 10: j. Total Inventory Cost:
VIEW
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