$1$Instructions

Below are $20$ questions, each with two parts: $(a)$ Calculate the Economic Order

Quantity $(EOQ)$ and $(b)$ Calculate the Reorder Point $(ROP).$ Use the following for$-$

mulas:

EOQ Formula:

EOQ$=\sqrt[\phantom{2}]{\frac{2DS}{H}}$

Where:

$D$ : Annual demand $(units)$

$S$ : Ordering cost per order $($$$)$

$H$ : Holding cost per unit per year $($$$)$

ROP Formula:

ROP$=d*L,or,$ROP$=(d*L)+SS,(if$ safety stock $is$ given$)$

Where:

$d$ : Daily demand $(unit\frac{s}{d}ay),$ calculated $asd=\frac{D}{360}$ assuming $360$ days per

year

$L$ : Lead time $(days)$

$SS$: Safety stock $(units,if$ applicable$)$

Solve each question using the provided values and formulas.

Questions

Annual demand $is12,000$ units, ordering cost $is$ $$50$ per order, holding cost

$is$ $$2$ per unit per year, lead time $is5$ days.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*12,000*50}{2}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{12,000}{360}*5)$ Annual demand $is8,000$ units, ordering cost $is$ $$40$ per order, holding cost

$is$ $$4$ per unit per year, lead time $is7$ days, safety stock $is100$ units.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*8\mathrm{.}000*40}{4}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{8,000}{360}*7)+100$

Annual demand $is20,000$ units, ordering cost $is$ $$60$ per order, holding cost

$is$ $$3$ per unit per year, lead time $is4$ days.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*20,000*60}{3}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{20,000}{360}*4)$

Annual demand $is15,000$ units, ordering cost $is$ $$25$ per order, holding cost

$is$ $$5$ per unit per year, lead time $is10$ days, safety stock $is50$ units.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*15,000*25}{5}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{15,000}{360}*10)+50$

Annual demand $is10,000$ units, ordering cost $is$ $$100$ per order, holding cost

$is$ $$8$ per unit per year, lead time $is6$ days.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*10,000*100}{8}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{10,000}{360}*6)$

Annual demand $is6,000$ units, ordering cost $is$ $$30$ per order, holding cost

$is$ $$6$ per unit per year, lead time $is3$ days.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*6,000*30}{6}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{6,000}{360}*3)$

Annual demand $is25,000$ units, ordering cost $is$ $$75$ per order, holding cost

$is$ $$1$ per unit per year, lead time $is8$ days, safety stock $is150$ units.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*25,000*75}{1}}$

$(b)$ Calculate the ROP. Form Annual demand $is30,000$ units, ordering cost $is$ $$80$ per order, holding cost

$is$ $$4$ per unit per year, lead time $is12$ days.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2-30,000*80}{4}}$

$(b)$ Calculate the ROP. Formula: ROP$=(\frac{30,000}{360}*12)$

Annual demand $is7,200$ units, ordering cost $is$ $$35$ per order, holding cost

$is$ $$2$ per unit per year, lead time $is5$ days, safety stock $is80$ units.

$(a)$ Calculate the EOQ. Formula: EOQ$=\sqrt[\phantom{2}]{\frac{2*7,200-35}{2}}$

$(b)$ Calculate the ROP. Formula: Annual demand $is4,000$ units, ordering cost $is$ $$10$ per order, holding cost

$is$ $$1$ per unit per year, lead time $is2$ days.

$(a)$ Calculate the EOQ. Formula: $EO$