Northcutt Bikes purchases two types of wheels for their roadracing bikes: a regular version and a deluxe version. The table below has demand information for the past year for each style of wheel, as well as combined figures.
a. Calculate the EOQ for each wheel type.
b. Calculate the ROP for each wheel type.
c. For each wheel type, calculate the total yearly holding and ordering cost, as well as total item cost.

Monthly
Other important information:
Yearly holding cost 20% of item cost
Ordering cost $200 per order
Service level 95%
Lead time 0.5 months
Item costs
Deluxe Wheels $40 each
Regular Wheels $35 each

Transcribed Image Text:

Regular Deluxe Combined Month wheels wheels demand EOQ- EOQ- Reg Del 45.60702 69.35416 jan 208 481 689 56.21388 feb 153 316 469 39.11521 March 238 553 791 48.78524 74.36397 april 296 648 944 54.40588 80.49845 may 292 228 520 54.03702 47.74935 june 322 527 849 56.74504 72.59477 july 102 605 707 31.93744 77.78175 aug 211 510 721 45.93474 71.41428 sept 286 538 824 53.47897 73.34848 oct 193 590 753 43.93177 76.81146 186 657 843 43.12772 81.05554 nov dec 129 582 711 35.91657 76.28892 std dev 72.1 122.8 | 129.2