A business owner uses 162 parts each day. Ordering cost for parts is $10 per order, and annual holding
cost is 1 dollars per unit. Assume 360 days in a year. What is the Economic Order Quantity for parts? -
ANS 1,080
EOQ=SQRT(2DS/H)=SQRT(2*162*360*10/1)=1,080 units.
A business owner uses 162 pa...
A business owner uses 162 parts each day. Ordering cost for parts is $10 per order, and annual holding
cost is 1 dollars per unit. Assume 360 days in a year. What is the Economic Order Quantity for parts? -
ANS 1,080
EOQ=SQRT(2DS/H)=SQRT(2*162*360*10/1)=1,080 units.
A business owner uses 162 parts each day. Ordering cost for parts is $10 per order, it take 3 days to
receive the parts once an order is placed, and annual holding cost is 1 dollars per unit. Assume 360 days
in a year. What is the ReOrder Point for parts? - ANS when 486 parts are left
ROP = L*R = 3*162 = 486 parts
Blue Star Ice Cream makes & sells fresh gelato daily. The cost to make a quart of gelato is $10 and it is
sold for $20. Leftover gelato remaining at the end of the day is made into milkshake and sold for $8 per
quart.
What is the optimal Service-Level for Blue Star? - ANS 83.33%
Cs = 20 - 10 = $10
Ce = 10 - 8 =$2
SL = Cs/(Cs+Ce) = 10/ (10+2) = 83.33%
Double-checking your answers before submitting the exam is an example of: - ANS Appraisal Cost
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