6. A factory consumes 230 bags of rice every two weeks. It takes its suppliers 11...

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6. A factory consumes 230 bags of rice every two weeks. It takes its suppliers 11 days to deliver each batch of rice ordered. The factory keeps 1500 bags of rice as a buffer in case of any unexpected delays. The factory's holding cost per unit is GHS 0.5, and its ordering cost is GHS 9 per order. Compute: a) The Economic Order Quantity (EOQ) b) The number of orders per year c) The total ordering cost per year d) The Re-Order Point (ROP) W 6. A factory consumes 230 bags of rice every two weeks. It takes its suppliers 11 days to deliver each batch of rice ordered. The factory keeps 1500 bags of rice as a buffer in case of any unexpected delays. The factory's holding cost per unit is GHS 0.5, and its ordering cost is GHS 9 per order. Compute: a) The Economic Order Quantity (EOQ) b) The number of orders per year c) The total ordering cost per year d) The Re-Order Point (ROP) W

Answer rating: 100% (QA)

a To calculate the Economic Order Quantity EOQ we can use the formula EOQ sqrt2 demand ordering cost ... View the full answer