Question
1.Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of
1.Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days.
What is the order point for Material Y?
2.The EOQ for Material is 7,500 gallons, and the carrying cost per gallon per year is P.25. What is the total annual carrying cost for Material?
3.Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos.
What is the lead time, assuming daily usage is 50 kilos?
4.Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos.
What would be the total annual carrying costs, assuming the carrying cost per unit is P.80
Step by Step Solution
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Step: 1
1 To calculate the order point for Material Y we need to consider the safety stock and lead time The ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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