William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? Annual Holding Cost = Average Inventory x Annual Holding Cost per Item= c) What are the annual ordering costs? Annual Ordering Cost = Ordering Cost per Order x Number of Orders = Ordering Cost per Order x (Total Annual Demand/Order Size) (round your response to the nearest whole number). = D S = $ H=S[ Q 19,400 units/year $26/order $4/unit/year (round your response to the nearest whole number).
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? Annual Holding Cost = Average Inventory x Annual Holding Cost per Item= c) What are the annual ordering costs? Annual Ordering Cost = Ordering Cost per Order x Number of Orders = Ordering Cost per Order x (Total Annual Demand/Order Size) (round your response to the nearest whole number). = D S = $ H=S[ Q 19,400 units/year $26/order $4/unit/year (round your response to the nearest whole number).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:
Demand D
Ordering cost S
Holding cost H
a) The EOQ for the workbooks is (round your response to the nearest whole number).
b) What are the annual holding costs for the workbooks?
Annual Holding Cost = Average Inventory x Annual Holding Cost per Item =
c) What are the annual ordering costs?
Annual Ordering Cost = Ordering Cost per Order Number of Orders
Q
H=$
= Ordering Cost per Order x (Total Annual Demand/Order Size)
D
= $ (round your response to the nearest whole number).
19,400 units/year
$26/order
$4/unit/year
(round your response to the nearest whole number).
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