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attached are 2 questions. also attached is the spreadsheet that is needed for each question. EOQ model. thank you 12-24 Blaine Abrams is the owner
attached are 2 questions. also attached is the spreadsheet that is needed for each question. EOQ model. thank you
12-24 Blaine Abrams is the owner of a small company that produces electric scissors used to cut fabric. The annual demand is for 75,000 scissors, and Blaine produces the scissors in batches. On average, Blaine can produce 1,000 pairs of scissors per day during the production process. Demand for scissors has been about 250 pairs of scissors per day. The cost to set up the production process is $800, and it costs Blaine $0.90 to carry 1 pair of scissors for one year. How many scissors should Blaine produce in each batch? 12-26 Chandler Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs Chandler Manufacturing $40 to place an order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, Chandler Manufacturing can get a 3% discount on the cost of the pumps. Should Chandler Manufacturing order 200 pumps at a time and take the 3% discount? Sumco Pump Company Inventory Input Data Demand rate, D Ordering cost, Co Carrying cost, Ch Unit purchase cost, P Results Economic order quantity, Q* Maximum inventory Average inventory Number of orders EOQ Model 1000 $10.00 $0.50 (fixed amount) $5.00 200.00 200.00 100.00 5.00 Total holding cost Total ordering cost Total purchase cost Total cost $50.00 $50.00 Total Inventory Cost $5,000.00 $5,100.00 Cost Table for Graph Start at Q 50.00 66.67 83.33 100.00 116.67 133.33 150.00 166.67 183.33 200.00 216.67 233.33 250.00 266.67 283.33 300.00 316.67 333.33 350.00 366.67 383.33 50.000 $100.00 Increment by 16.667 Order cost Holding cost Total cost 200.00 12.50 212.50 150.00 16.67 166.67 120.00 20.83 140.83 100.00 25.00 125.00 85.71 29.17 114.88 75.00 33.33 108.33 66.67 37.50 104.17 60.00 41.67 101.67 54.55 45.83 100.38 50.00 50.00 100.00 46.15 54.17 100.32 42.86 58.33 101.19 40.00 62.50 102.50 37.50 66.67 104.17 35.29 70.83 106.13 33.33 75.00 108.33 31.58 79.17 110.75 30.00 83.33 113.33 28.57 87.50 116.07 27.27 91.67 118.94 26.09 95.83 121.92 400.00 416.67 433.33 25.00 24.00 23.08 100.00 104.17 108.33 125.00 128.17 131.41 Inventory: Cost vs Quantity 250.00 Cost ($) 200.00 150.00 100.00 50.00 0.00 Order cost OrderHolding cost Quantity (Q) Total costStep by Step Solution
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