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William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: 19,500 units/year $25/order $5/unit/year (round your response to the nearest whole number). a) The EOQ for the workbooks is Demand D Ordering cost S Holding cost H

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: 19,500 units/year $25/order $5/unit/year (round your response to the nearest whole number). a) The EOQ for the workbooks is Demand D Ordering cost S Holding cost H

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
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**William Beville's Computer Training School Inventory Analysis** **Objective:** To determine the Economic Order Quantity (EOQ) for workbooks used in training. **Inventory Characteristics:** - **Demand (D):** 19,500 units/year - **Ordering Cost (S):** $25/order - **Holding Cost (H):** $5/unit/year **Task:** a) Calculate the EOQ for the workbooks. Round your response to the nearest whole number. **Methodology:** To find the EOQ, you would typically use the EOQ formula: \[ \text{EOQ} = \sqrt{\frac{2DS}{H}} \] Plug in the values provided for Demand, Ordering Cost, and Holding Cost to solve for the EOQ.
Transcribed Image Text:**William Beville's Computer Training School Inventory Analysis** **Objective:** To determine the Economic Order Quantity (EOQ) for workbooks used in training. **Inventory Characteristics:** - **Demand (D):** 19,500 units/year - **Ordering Cost (S):** $25/order - **Holding Cost (H):** $5/unit/year **Task:** a) Calculate the EOQ for the workbooks. Round your response to the nearest whole number. **Methodology:** To find the EOQ, you would typically use the EOQ formula: \[ \text{EOQ} = \sqrt{\frac{2DS}{H}} \] Plug in the values provided for Demand, Ordering Cost, and Holding Cost to solve for the EOQ.
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,900 units per year. The cost of each unit is $102, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 118 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? □ units *(round your response to two decimal places)*.
Transcribed Image Text:Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,900 units per year. The cost of each unit is $102, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 118 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? □ units *(round your response to two decimal places)*.
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