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Operations management EN 24/25
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A company has the following inventory characteristics: Annual demand = 90,000 units; Ordering cost = $75/order; Holding cost = $0.15 per unit per day; Operating schedule = 45 weeks/year, 5 days/week. What is the EOQ and approximately how many orders will be placed each year?
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The Schubert Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the “Smooth Shifter”, is used for the two most expensive of Schubert’s four models, and has an estimated annual demand of 300 units. Schubert estimates the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year. What are the total annual holding and ordering costs if Schubert orders using the EOQ quantity?
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Which one of the following statements regarding the economic order quantity (EOQ is TRUE?
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A manufacturer has the following parameters: Annual demand = 144,000 units; Ordering cost = $50 per order; Holding cost = $0.12 per unit per day; Operating schedule = 52 weeks/year, 5 working days/week. Under the EOQ policy, what is the number of orders per month?
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The Schubert Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the “Smooth Shifter”, is used for the two most expensive of Schubert’s four models, and has an estimated annual demand of 300 units. Schubert estimates the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year. How many times per year must Schubert order the Smooth Shifter when orders are placed using the EOQ quantity?
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Kromberg uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the YY-22, has an estimated annual demand of 8,000 units. Kromberg estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. How many times per year must Kromberg order the YY-22 when orders are placed using the EOQ quantity?
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The Schubert Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the “Smooth Shifter”, is used for the two most expensive of Schubert’s four models, and has an estimated annual demand of 300 units. Schubert estimates the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year. What are the annual inventory holding costs if Schubert orders using the EOQ quantity?
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A firm has the following inventory characteristics: Demand = 52,000 units/year. Ordering costs = $45/order. Holding costs = $0.50/unit/year. Cycle-service level = 90%. Lead time = 2 weeks. Number of weeks per year = 52 weeks. What is the EOQ for this item?
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Which one of the following descriptions best defines the customer-service level as a measure of customer service?
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Kromberg uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the YY-22, has an estimated annual demand of 8,000 units. Kromberg estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. The purchasing manager decides that, in order to save purchasing time, orders for the YY-22 will be placed every three months, or four times per year. How much does this approach cost Kromberg in total annual holding and ordering costs (instead of Kromberg ordering using the EOQ quantity?
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