Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ANNUAL DEMAND VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA 300000 250000 360000 PRODUCTS' STRUCTURE RAW MATERIALS VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA FLOUR (gr) 25 25
ANNUAL DEMAND | |||
VEGGIE PIZZA | PEPPERONI PIZZA | CHEESE PIZZA | |
300000 | 250000 | 360000 | |
PRODUCTS' STRUCTURE | |||
RAW MATERIALS | VEGGIE PIZZA | PEPPERONI PIZZA | CHEESE PIZZA |
FLOUR (gr) | 25 | 25 | 25 |
YEAST (gr) | 5 | 5 | 5 |
VEGETABLE OIL (mlt) | 5 | 5 | 5 |
SUGAR (gr) | 2 | 2 | 2 |
SALT (gr) | 5 | 5 | 5 |
KETCHUP SAUCE (mlt) | 25 | 25 | 25 |
CHEESE (gr) | 30 | 30 | 40 |
SWEET PEPPER (gr) | 10 | 0 | 0 |
GARLIC (gr) | 10 | 0 | 0 |
TOMATO (gr) | 20 | 0 | 0 |
MUSHROOM (gr) | 20 | 5 | 0 |
PEPPERONI (gr) | 0 | 20 | 0 |
Assume that we have 365 days in a year | PRICE per Kg | SHIPMENT COST per each delivery | ANNUAL HOLDING COST per unit |
FLOUR | 2 | 0.1 | 0.4 |
YEAST | 20 | 0.12 | 4 |
VEGETABLE OIL | 2.5 | 0.09 | 0.5 |
SUGAR | 1 | 0.09 | 0.2 |
SALT | 1 | 0.05 | 0.2 |
KETCHUP SAUCE | 1.5 | 0.05 | 0.3 |
CHEESE | 10 | 0.1 | 2 |
SWEET PEPPER | 1 | 0.1 | 0.35 |
GARLIC | 2.5 | 0.12 | 0.5 |
TOMATO | 1 | 0.11 | 0.35 |
MUSHROOM | 3 | 0.14 | 0.35 |
PEPPERONI | 20 | 0.1 | 4 |
Formula | |||
EOQ | SQRT 2SD/H | Where S= Set-up cost, D= Demand Rate, H= Holding cost | |
ROP | Average Daily Sales X Days of Average Lead Time | ||
Demand during Shelf Life | (Annual Demand X Shelf Life)/ 365 | ( Note: 365 days in a year) | |
Determine EOQ for each individual raw material?
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