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Prepare a schedule for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of
Prepare a schedule for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units. The company uses a chase strategy for determining the production lot size, except there is an upper limit on the lot size of 70 units. Also, the desired safety stock is 10 units. Note: The ATP quantities are based on maximum allowable production and do not include safety stock. Committed orders are as follows: (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Click here for the Excel Data File A local distributor for a national tire company expects to sell approximately 9,810 tires of a certain size and tread design next year. Annual carrying cost is $16 per tire and ordering cost is $80. The distributor operates 287 days a year. a. What is the EOQ? (Round your answer to a whole number.) b. How many times per year does the store reorder? (Round your answer to two decimal points.) c. What is the length of an order cycle? (Round your answer to two decimal points.) d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)
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