TranscribedText: 192 193 Q4 Green Lid. has undertaken some inventory planning for one of its main raw materials. Inventory planning data is listed below Q4 sub 194 195 Working days per year 320 days 196 Normal use per day 225 units 197 Maximum use per day 260 units 198 Minimum use per day 150 units 199 Lead time days 200 Cost of placing one order $20.00 201 Carrying cost per unit per year $2.00 202 203 Required: 204 1. Compute the following: 205 a. EOQ. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) (2 marks) 206 EOQ - units 207 Supporting calculations b. Reorder Point (1 mark) Reorder point = units Supporting calculations c. The company has concerns about demand spikes and so would like to establish a safety stock. Based on the information provided, calculate the safety stock level and the new re-roder point including safety stock. (2 marks) Safety stock = units Revised Re-order point units Supporting calculations d. Referring to the original data, how would the following 3 independent situations affect the EOQ? Also briefly explain why (2 marks) Outcome Explanation Situation 1: a 10% increase in ordering costs only

192 193 Q4 Green Ltd. has undertaken some inventory planning for one of its main raw materials. Inventory planning data is listed below 194 195 196 197 198 199 200 201 Working days per year 320 Normal use per day 225 days units Maximum use per day Minimum use per day Lead time 260 units 150 units 3 days Cost of placing one order Carrying cost per unit per year $20.00 $2.00 202 203 Required: 204 1. Compute the following: 205 a. EOQ (Do not round intermediate calculations. Round your final answer to the nearest whole number.) (2 marks) 206 EOQ= units 207 208 209 210 211 212 b. Reorder Point (1 mark) 213 Reorder point units 14 215 16 17 18 19 20 21 22 23 6 7 8 9 0 c. The company has concerns about demand spikes and so would like to establish a safety stock. Based on the information provided, calculate the safety stock level and the new re-roder point including safety stock. (2 marks) Safety stock units Revised Re-order point units d. Referring to the original data, how would the following 3 independent situations affect the EOQ? Also briefly explain why (2 marks) Situation 1: a 10% increase in ordering costs only Outcome Explanation 04 sub Supporting calculations Supporting calculations Supporting calculations 7.0