nventory Management: EOQ

Emma$$s Home Store sells beds and other home goods. Her winning product has an annual

demand of $400$ units. Ordering cost is $$40$ and holding cost is $$5$ per unit per year. To minimize

the total cost, how many units should be ordered each time an order is placed?

Inventory Management: POQ

Alfa Car Manufacturer produces parts at a rate of $300$ daily and uses these parts at a rate of

$12500$ per year $(250$ working days$).$ Holding costs are $$2$ per unit per year and ordering costs are

$$30$ per order.

a$)$ What is the economic production quantity?

b$)$ How many production runs per year will be made?

c$)$ What will be the maximum inventory level?

d$)$ What percentage of time will the facility be producing parts?

e$)$ What is the total annual cost?

Inventory Management: Order Quantity Discount Model

A laptop company pur