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Q1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost= $8 unit/yr Ordering Cost = $100 unit/yr Price
Q1. Calculate EOQ and plot a graph with the following information.
Annual Usage= 1600 units Holding Cost= $8 unit/yr Ordering Cost = $100 unit/yr Price of per Unit= $50
Number of Units | Number of Order |
1600 | 1 |
800 | 2 |
400 | 4 |
200 | 8 |
100 | 16 |
80 | 20 |
50 | 32 |
Q2. SaveMart needs 2000 coffee makers per year. The cost of each coffee maker is $88. Ordering cost is $110 per order. Carrying cost is 45% of per unit cost. What is the optimal or economic order quantity?
Hint*= Carrying Cost is 45% of $88.
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