1.) Bob's Warehouse is a large supplier in the microprocessor industry, they operate 200 days a year. The warehouse has an annual demand of 8000 inventory units. The units held at the inventory have an associated ordering cost of $30 and holding cost that is 10% of the ordering cost.

Compute the optimal order quantity (EOQ), Expected Numbers of order per year, expected time duration between orders, total cost, ordering cost, and holding cost for Bob.

1.) Bob's Warehouse is a large supplier in the microprocessor industry, they operate 200 days a year. The warehouse has an annual demand of B000 inventory units. The units held at the inventory have an associated ordering cost of $30 and holding cost that is 10% of the ordering cost. Compute the optimal order quantity (EOC), Expected Numbers of order per year, expected time duration between orders, total cost, ordering cost, and holding cost for Bob. Hint: Ordering cost: (D/Q's Holding cost: (09/2)H Optimal order quantity 2DS O"= H Expected number of orders NE D Expected time between orders T - Number of working days 2) Calculate ROP/ (Simple) Your Turn Bob's neighborhood shop D=1,800 per year 300 working days a year Suppose that it takes 15 working days to receive an order. At what point should Bob reorder? 2.) Calculate ROP/H (Simple) Your Turn Bob's neighborhood shop D =1,800 per year 300 working days a year Suppose that it takes 15 working days to receive an order. At what point should Bob reorder? Solution: d = LT = ROP = d.LT = WHEN INVENTORY DROPS TO 'ROPUNITS, PLACE REORDER