Carbondale Carbondale Carbondale Carbondale Carbondale H = $2 per unit per a) Wh

Question

Carbondale Carbondale Carbondale Carbondale Carbondale H = $2 per unit per a) What is the economic order quantity b) How does your answer change if the holdin c) What if the holding cost drops in half? Px 12.9 The small boatyard White Kayaks built 156e last year. Each of these requires 12 kg of epoxy, purchasen barrels at S170 each, with a freight cost of S18 per shipment plus Se The annual carrying cost is estimated to be 20% of the value. a) If the purchase policy is to buy 20 barrels each time, how much t plus SIk time can be spent on administrative work if the order quantiy is considered optimal? The boat-builder charges $25/hour. b) If time spent is 30 minutes, what would be the optimal orde quantity? 12.10 Matthew Liotine's Dream Store sells beds ssorted supplies. His best-selling bed has an annual demand 00 units. Ordering cost is $40: holdi

Explanation / Answer

Doing a what if analysis.

So 7.25 hours can be taken in total over the year.

B.

For 30 mins:

Now we use the same :

So new optimal order is 43 units

D Demand 312 2*156 P Cost 170 $ h Inv carrying cost 34 .2*170 $ A Hours of admin 7.25 $ Ans A H Cost of admin 25 $/hr K Trip cost 138 Order Q= sqrt(2*KD/(h+AH)) 20.0003 N=D/Q Trips required 15.59977 DI=250/N Days of Inv 16.02588 Ans IC=Q*h/2 Holding cost 340.005 Ans N*K Annual Ordering Cost 2152.768 Ans Total cost 2492.773

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