1. Look at this formula for inventory management (no quantity discount and use E0Q as Q): Total annual cost - Annual holding cost + Annual ordering or setup cost uf: A = Total annual cost; B - Annual holding cost; C = Annual ordering or setup cost: Answer the following questions when Qincreaseldecrease, what impact does it have to A,B,C When increase! Answers decrease 1a Impact on Cost goes up or down on Maybe up or down UP B 12 1b DOWN 12 10 MAYBE 12 (for your caloulations Demand 16,200.00 Holding $7.00 Setup (ordering $70.00 Unit cost $20.00 2. Amanufacturer needs 16,200 units of a particular part to fulfill its customers demand yearly. Holding cost per unit annually is $7.00 each. The order cost (setup cost) is $70.00 each time. The unit cost is $20.00 each. Answers 1. What is EOQ 'economic order quantity)? 569.2099788 2. How many orders this firm place a year? 3. If the firm's yearly working day is 330, what is the daily demand? 4. If the lead time is 5 days and each time the firm wish to keep 60 units as safety stock when ordering. What is the ROP? (daily demand is from Cell E23) 305.4545455 5. What is the expected time between orders? (continue from question 3) 2%. 17 12 22 17 Expected time between orders = numbers of working days per year how many orders a year 8 6. What is the total annual production costs including inventory management cost (holding cost + ordering cost)? 27