20 2 0backordering%20%20EPO%20Model.pdf Q1. Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. . The annual demand is 10000 units and the ordering cost is $10. The holding cost per unit per year is $1. The managers allow back-ordering in case of shortages, however back-ordering a single unit through the whole year costs $4. The unit price of the needles is $2. Sharp, Inc., works for 250 days in a year. Lect. Ismail BASOGLU, Ph.D. EOQ WITH BACK-ORDERING & EPO MODEL EOQ with Back-ordering Economic Production Quantity (EPO) Model The Mode Description Optimal inventory Plan EOQ Model with Back-ordering: Example (cont'd) a) Calculate the maximum allowed back-ordering quantity and the economic order quantity. b) What is the number of orders per year? c) What is the economic order cycle? 20 2 0backordering%20%20EPO%20Model.pdf Q1. Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. . The annual demand is 10000 units and the ordering cost is $10. The holding cost per unit per year is $1. The managers allow back-ordering in case of shortages, however back-ordering a single unit through the whole year costs $4. The unit price of the needles is $2. Sharp, Inc., works for 250 days in a year. Lect. Ismail BASOGLU, Ph.D. EOQ WITH BACK-ORDERING & EPO MODEL EOQ with Back-ordering Economic Production Quantity (EPO) Model The Mode Description Optimal inventory Plan EOQ Model with Back-ordering: Example (cont'd) a) Calculate the maximum allowed back-ordering quantity and the economic order quantity. b) What is the number of orders per year? c) What is the economic order cycle