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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jessyqueen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.35. You're not tied to anything after your purchase.
