Just question 4 part 4 in exel sheet diagram

QUESTION 4 (30 Marks) Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) Purchase price per unit Carrying/Holding costs per unit Cost per order 115,200 $ 300 $ 8 $ 200 Required: 1. Determine the EOQ using the equation method. (6 marks) 2. Fill the blanks in the following table using the above data. (8 marks) No. of orders 1 10 20 30 90 120 Order size Average stock Carrying (Holding) costs Order costs Total costs 3. Calculate the holding, ordering cost & their total cost at the EOQ level. (5 marks) 4. Plot the graph at the EOQ level showing the numbers (2 marks). 5. Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. (9 marks) Question 4. (1) Calculating EOQ: A: annual demand, O: ordering cost carrying cost WSOVER 19 = 2400 units 10 20 90 No. of orders Order size 115,200 S760 1 280 480 Average 57.600 stock (b) (115, 2002(11.52013) 0.7601203,8402) (1.280/2) Carrying 460,900 13.920 (Holding costs (bx 8 Order 119.000 coste f00, of orders 1 200) 461 000 27.02 2:3602 23:120 c) Calculating, hoiding, ordering and total cost at 100 level: Cost of ordering (115.200 x 2.400) x200=9,600.1 12000 Total cost 27.8440 Holding cost (2,400 / 2 x 8) =9,600 00761 = 009-6 +009*6 = 1500 01. QUESTION 4 (30 Marks) Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) Purchase price per unit Carrying/Holding costs per unit Cost per order 115,200 $ 300 $ 8 $ 200 Required: 1. Determine the EOQ using the equation method. (6 marks) 2. Fill the blanks in the following table using the above data. (8 marks) No. of orders 1 10 20 30 90 120 Order size Average stock Carrying (Holding) costs Order costs Total costs 3. Calculate the holding, ordering cost & their total cost at the EOQ level. (5 marks) 4. Plot the graph at the EOQ level showing the numbers (2 marks). 5. Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. (9 marks) Question 4. (1) Calculating EOQ: A: annual demand, O: ordering cost carrying cost WSOVER 19 = 2400 units 10 20 90 No. of orders Order size 115,200 S760 1 280 480 Average 57.600 stock (b) (115, 2002(11.52013) 0.7601203,8402) (1.280/2) Carrying 460,900 13.920 (Holding costs (bx 8 Order 119.000 coste f00, of orders 1 200) 461 000 27.02 2:3602 23:120 c) Calculating, hoiding, ordering and total cost at 100 level: Cost of ordering (115.200 x 2.400) x200=9,600.1 12000 Total cost 27.8440 Holding cost (2,400 / 2 x 8) =9,600 00761 = 009-6 +009*6 = 1500 01