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1. What is the optimal number of motors that Brooks' managers should order according to the EOQ model? 2. At what point should managers reorder
1. What is the optimal number of motors that Brooks' managers should order according to the EOQ model? 2. At what point should managers reorder the motors, assuming that both demand and purchase-order lead time are known with certainty? 3. Now assume that demand can vary during the 3-week purchase-order lead time. It brooks runs out of stock, it would have to rush order the motors at an additional cost of $4 per motor. How much safety stock should the assembly plant hold? How will this affect the reorder point and reorder quantity? Requirement 1. What is the optimal number of motors that Brooks's managers should order according to the EOQ model? Begin by selecting the formula used to calculate EOQ. ( D= Demand in units for one year, P= Ordering cost per purchase order, C=C Carrying cost of one unit in stock, Q= Any order quantity) The optimal number of motors per order is motors. Requirement 2. At what point should managers reorder the motors, assuming that both demand and purchase-order lead time are known with certainty? Determine the formula used to calculate the reorder point for reordering motors, then calculate the reorder point. much safety stock should the assembly plant hold? How will this affect the reorder point and reorder quantity? The assembly plant should hold motors as safety stock because when this number of motors are held, the total stockout and carrying costs are the This will the reorder point to motors. The reorder quantity will
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