Q1:

Cheeseburger and Taco Company purchases 12,745 boxes of cheese each year. It costs $28 to place and ship each order and $3.64 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Calculate Economic Order Quantity

Q2:

Cheeseburger and Taco Company purchases 15,345 boxes of cheese each year. It costs $10 to place and ship each order and $5.94 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Q3:

Cheesburger and Taco Company purchases 8,734 boxes of cheese each year. It costs $27 to place and ship each order and $5.91 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

How many orders will be placed each year?

Q4:

Cheeseburger and Taco Company purchases 16,163 boxes of cheese each year. It costs $18 to place and ship each order and $6.81 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual carrying costs of cheese inventory.

Q5:

Cheeseburger and Taco Company purchases 9,889 boxes of cheese each year. It costs $17 to place and ship each order and $5.66 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual ordering cost of cheese inventory.

Q6:

Cheeseburger and Taco Company purchases 17,899 boxes of cheese each year. It costs $20 to place and ship each order and $6.69 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual total inventory management costs of cheese inventory.

Q7:

Appliance for Less is a local appliance store. It costs this store $26.60 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 587 units. Each order costs $95. The company is using Economic Order Quantity model in placing the orders.

It takes approximately 3 day(s) to receive an order after it has been placed. If the store insists on a 4 day(s) safety stock (assume 365-days a year), what should the inventory level be when a new order is placed?

Q8:

Appliance for Less is a local appliance store. It costs this store $16.02 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 441 units. Each order costs $80. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a5 dayssafety stock (assume 365 days a year)?