Excel Formulas

Operations Managment

A company purchases an item from a supplier with an annual demand of 2,000 units. It costs the company $200 for every order placed, and $20 for every unit purchased. The company's carrying cost per unit per annum is $2. 1. Calculate the the economic order quantity ( 0.5 point), 2. Calculate total purchasing cost (0.5 point) 3. Calculate total ordering cost ( 0.5 point) 4. Calculate total holding cost ( 0.5 point). Please show the calculation otherwise you cannot get any score. You can do the calculation on a sheet of paper, and then paste it in this sheet. A manufacturer buys an item from its supplier. The purchasing manager needs to find when he/she should place orders for the item from its supplier. Relevant information is as follows: Average demand is 30 units per day, Standard deviation of the demand 5 units per day, Lead time is 5 days, Service level or the probability that they want to meet the demand during the lead time is 95%. 1. Calculate the safety stock (1 point). 2. Calculate the reoirder point ( 0.5 point) Please show the calculation otherwise you cannot get any score. You can do the calculation on a sheet of paper, and then paste it in this sheet