1. In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the number of orders for this problem?

A) 70.5 B) 141 C) 24 D) 42.55 E) 490

2. The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the number of production runs for this problem?

A) 16.54 B) 32.24 C) 17.42 D) 19.83 E) 20.96

3. The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. (a) What is the optimal order quantity for range 1?

Quantity Price

1-9 $2.95 per unit

10 - 999 $2.50 per unit

1,000 - 4,999 $2.30 per unit

5,000 or more $1.85 per unit

A) 1805.788 B) Needs to be discarded. C) First, all EOQs need to be determined. D) 2254.938 E) 2013.468