Inventory Managment
Autor: midati5 • December 22, 2015 • Study Guide • 1,566 Words (7 Pages) • 1,071 Views
Answer of Question No. 4-1
a ) The Economic order quantity can be calculated as
EOQ = [pic 1]
A = 2500
= 19[pic 2]
= 1.90[pic 3]
Therefore EOQ = [pic 4]
= 223.60
= 224 ( approximately )
- Given the EOQ, what is the average inventory?
Average Inventory = [pic 5]
= [pic 6]
= 112
- What is the annual inventory holding cost?
Annual Inventory holding cost = [pic 7]
= $1.90 x [pic 8]
=$212.8
- In minimizing cost, how many orders would be made each year?
No. of orders = [pic 9]
= [pic 10]
= 11.16
= 12 orders approximately
- What would be the annual ordering cost?
Annual ordering cost = [pic 11][pic 12]
= 19 x 12
= $ 228
- Given the EOQ, what is the total annual inventory cost (including purchase cost)?
Total Annual Inventory Cost = Annual inventory holding Cost + Annual ordering cost + purchase cost
= 212.8 + 228 + 2500 *19
= 47940.8
- What is the time between orders?
Since we needs to order 12 times a year, and the lead time is 4 days, the time between orders is
= [pic 13]
= 26.42
- What is the ROP?
ROP = Daily demand * Lead Time
Reorder point = [pic 14]
= 40
Answer of Question No. 4-2
- Find the total amount spent on each item during the year. What is the total investment for all these?
[pic 15]
Please check the column no. 4
- Find the percentage of the total investment in inventory that is spent on each item.
Please check the column no. 5
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