Question
Already having some insights into the local demand for electric cars from regression analysis in the previous step, Vinauto can now think about their production
Already having some insights into the local demand for electric cars from regression analysis in the previous step, Vinauto can now think about their production planning. Battery is one of the most important components to manufacture an electric car that Vinauto has to source from a third party. Given that each electric car requires 1 battery, you are asked to build an EOQ inventory model to estimate the optimal order quantity for battery to satisfy the forecasted demand for electric cars in the targeted foreign country in 2022. All the information you have: - Demand: 3000 units/year - Ordering cost: 1000 per order - Holding cost: 35 per unit per month - Purchase cost: 30 - The discount for purchasing is arranged as below: o Q < 100: no discount (100%) o 100 <= Q <= 299: 5% discount (95%) o 300 <= Q <=399: 10% discount (90%) o Q >= 400: 20% discount (80%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started