1. Assume annual demand is 40 units, ordering cost is $5.00, and holding cost is $1.00/unit/year.

a)Find EOQ.

b)Find total cost.

c)Find cycle time.

d)Find the number of orders per year.

2. The ABC bumber company produces bumpers at the rate of 400 per day. Usage is 300 per day. Company operates 200 days a year. Holding cost is $2.50/unit/year (0.0125/unit/day). Ordering cost is $48.00

a) Find the optimal run size.

b) Find the total cost.

c) Find the run time.

3. Consider the following prices breaks;

Order size Cost

0-299 $15.00

300-499 $14.00

500 or more $12.00

Holding cost is 30% of cost. Ordering cost is $40.00. Annual demand is 6000 units. Find total costs and optimal order quantity.