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Assessment: Problem Solving # 2 A. The ABC Company is planning to stock a new SKU (stock keeping unit) which is classified as an inventory
Assessment: Problem Solving # 2 A. The ABC Company is planning to stock a new SKU (stock keeping unit) which is classified as an inventory item. The Company has an annual usage of 375 units. Each inventory item has a value of P 280. Ordering cost is P 350 per order. Carrying cost is 20% of the average inventory. Determine the following: (50 points) Using EOQ Formulas Tabular Graphical Approach Approach Use excel a. Optimum number of orders per year b. Optimum number of days' supply per order +3 c. Optimum amount in peso per order d. Optimum number of units per order e. Optimum inventory cost B. A company has a chance to reduce their inventory ordering cost by placing larger quantity orders using a price-break order quantity schedule below, What should their optimal order quantity be if this company purchases this single inventory item with an e-mail ordering cost of $4, a carrying cost rate of 2% of the inventory cost of the item, and an annual demand of 10,000 units? (30 points) Order quantity (units) Price/unit ($) 0 to 2,499 1.20 2,500 to 3,999 1.00 4,000 or more 0.98
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