Below are some of the key figures important in your analysis.

P350 Wholesale Price $ 275.00 P350 Retail Price $ 399.00 Annual Per Unit Holding Costs are estimated at 27.5% of the wholesale cost of the P350. Costs associated with each order include: Order Placement Fees (Documentation, Network Support) $ 15.00 Delivery (Fuel, Driver, Truck, etc.) $ 45.00 Packaging $ 27.00 Receiving (Inspection, Documentation, etc.) $ 15.00 Labor ( 4 hours @ $9.50/hr) Stocking, Misc. $ 38.00 Therefore, the givens are: (use three decimal places where appropriate) D = 3900 units S = $140 (Do you know where this number came from?) C = $275.00 H = 0.275 X $275 = $75.625 D/52 = Weekly Demand = 3900/52 = 75 units

Presently orders are being placed every 6 Weeks. We find this by using the Time Between Orders formula. 1.1 How many orders per year are being placed annually? Do Not Round to a whole number (Show 2 decimal places here).

1.2 According to the information supplied, what is the present annual inventory cost? (In other words, using their present lot size, what is the annual inventory cost?) Also, separately identify the annual holding cost (AHC) and annual ordering cost (AOC). (Round to 2 decimal places)

Using the Economic Order Quantity (Q=EOQ)

The calculated EOQ is ___________________. (USE A WHOLE NUMBER, NO DECIMALS) 2.2 Using the calculated EOQ, orders will be placed every _______ Weeks. DO NOT ROUND to a whole number (Show 2 decimal places) 2.3 According to the information supplied, what would be the annual inventory cost if they used the calculated EOQ (use your answer for question 3 as the Q here)? Also, separately identify the annual holding cost (AHC) and annual ordering cost (AOC). (Show 2 decimal places)

2.4 If they could order the EOQ instead of 450, how much would this one store stand to save annually? 2.5 Why is this not possible, though?

3.1 Fill in the table to help you answer question #3.2

3.1 Fill in the table to help you answer question # 3.2 (Showing work not Required BUT YOU MUST FILL IN THIS TABLE). I've filled in the last row as an Example. If I order every Every X week(s) X week(s) I'll sell Z units 1 2 3 4 How many extra units How much Ordering in increments will I have left over of 50, I'll need to order after every order of Y Y total units units? Units Units Units 300 Units Units Units Units 300 Units 3.2 You recommend that this Buckshot Electronics store order: Q= Units Units Units 0 Units weeks. units of P350 every Remember your recommendation should average at least 75 units per week. For example, 300 units would last 4 weeks. Anything less than that would not get them through to the next ordering period. 3.3 According to your recommendation, the Total Annual Inventory cost would be: smaller/larger is my order than the calculated EOQ? Units Units Units + 180Units