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Inventory Management: Practice Computational Problems Problem 1: A retail operation sells computers. Each computer retails for $499. The monthly holding cost for each computer is $40. Placing an order costs $100, regardless of the quantity of computers ordered. The monthly demand for computers at this operation is 320. Using the basic EOQ model, what are: a) The economic order quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly ordering cost? Problem 2: The next two questions use the following information. A grocery store uses 600 boxes of plastic bags per month. The boxes cost $25 each, placing an order for plastic bags costs $20, and holding costs and $5 per box per month. Using the basic EOQ model, what are: a) The economic order quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly ordering cost? Problem 3: A manufacturing operation produces Billy Bass singing fish. The daily production rate is 150 units The monthly demand is 1500 units (corresponding to a daily usage rate of 50 units). Each Billy B retails for $14.99. The monthly holding cost for each Billy Bass is $2 and the setup cost for production run is $600. What are: a) The economic production quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly setup costs? P cost is $50 and holding Problem 4: A manufacturer produces umbrellas, which it sells for $10 each. The production rate is 1001 The monthly demand for umbrellas is 1800 (and so usage per day is 60). Setup cost is $50 a cost is $1 per umbrella per month. What are: a) The economic production quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly setup costs? I Problem 5: nital orders latex gloves in lots of 200 boxes. Inventory is depleted at a constanta istanbrate and orders im boxes. What is the