Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Operations and Supply Chain Management

Authors: Cecil B. Bozarth, Robert B. Handfield

3rd edition

132747324, 978-0132747325

More Books

Students also viewed these General Management questions

Question

What can be done to get more people to value water more highly?

Answered: 1 week ago