EOQ

The ABC Retail Company has the following data available for one of its items: annual demand = 10000 units; holding cost = 6. 25 pesos; ordering cost = 20 pesos. Consider 300 days of work annually. Find the following: a. b. c. d. EOQ NUMBER OF ORDERS PER YEAR LENGTH OF ORDER CYCLE WHAT IS THE ANNUAL INVENTORY COST

Consider an inventory system with the following data: annual demand for a particular item is 1500 units; carrying cost of one unit is 0.15 pesos; ordering cost is 15 pesos. a. b. c. d. EOQ NUMBER OF ORDERS PER YEAR LENGTH OF ORDER CYCLE WHAT IS THE ANNUAL INVENTORY COST

EPQ
Philchem Corporation supplies East Engineering Company with a chemical at the rate of 5500 barrels per day and a price of 19.10 pesos per barrel. The company uses the chemical at the rate of 2200 barrels per day and 550000 barrels per year. The ordering cost is 3250 pesos per year and the holding cost is 25% of the price of the per barrel per year. Find a. b. c. d. EOQ CYCLE TIME RUN TIME TC at EOQ

GL Electronics produces 300 transistors per day, which go into inventory. It supplies 150 transistors per day to Murphy Radios. The annual demand is 37500. The inventory holding cost is 0.25 pesos per transistor per year and the set-up cost per production run is 200 pesos.; e. f. g. h. EOQ CYCLE TIME RUN TIME TC at EOQ

DISCOUNTS

The annual demand is estimated to be 15000 pistons per year. The carrying costs are 2pesos of the unit price and the ordering costs are 6.50 pesos. Assume instantaneous delivery. a. b. c. d. EOQ CYCLE TIME RUN TIME TC at EOQ

The Maggi Soup Company buys 90000 containers each year from a Cannery Company. The ordering cost is 90 pesos. The carrying cost pr container per year is assumed to be 20% of the unit price. The discount price schedule is as follows:

Assume instantaneous delivery, find the following: a. b. c. d. EOQ CYCLE TIME RUN TIME TC at EOQ

REORDER POINT

1. The daily demand for beer at the Brown Bottle Pub follows a normal distribution with a mean of 50 liters and a standard deviation of 15 liters. The lead time is 10 days. For a desired service level of 95% find (a) order point (b) safety stock. 2. The daily demand for raw material for an automatic machine is a constant 50 units. The lead time follows a normal distribution with mean of 8 days and a standard deviation of 2 days. Find (a) order point (b) safety stock if the service level is 95% 3. Sarao Fantastic Jeepney buys set of steel at 40 pesos per set from an outside vendor. Sarao will need a constant demand of 6400 sets evenly throughout the year. Lead time is constant at one week and there are 50 working weeks in the year. Compute for the reorder point.

4. The daily demand for cheeseburger at Burger Barn follows a normal distribution with a mean of 1000 and a standard deviation of 100. The lead time is also described by a normal distribution with a mean of 8 days and a standard deviation of 2 days. Find (a) order point (b) safety stock if the service level is 96%

FIXED ORDER INTERVAL AND SINGLE PERIOD MODELS

1. The daily usage of stationery at the Bank of the Philippines follows a normal distribution with a mean of 8 boxes and a standard deviation of 3 boxes. The bank places at fixed time intervals of 8 days with a lead time of 3 days. If the inventory on hand is 15 boxes and the desired service is 99% find (a) order point (b) safety stock 2. A small rural store buys freshly made cookies at a cost of 2.75 pesos per kilo and sells them at a price of 4 pesos per kilo. The unsold cookies are salvaged at 1 peso per kilo. The daily demand follows a normal distribution with a mean of 95 kilos and a standard deviation of 15 kilos. If the order is placed once a day, find the order quantity. Assume that the carrying cost is zero.

3. The demand during lead time for automotive bearings at the manufacturing company follows a poisson distribution with a mean of 3.2. find the order point for a service level of 99%. 4. A small mom and pop restaurants desires a daily service level of 80% for its steaks. If the demand during lead time for steak follows a poisson distribution with a mean of 8, find the order point.