2. PT Cikarang, opened a gift shop which operates 52 weeks per year. Managing inventories has...
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2. PT Cikarang, opened a gift shop which operates 52 weeks per year. Managing inventories has become a problem. Top-selling product is a key holder. sales are 18 units per week, and the price per unit is $60. Ordering cost is $45. Annual holding cost is 25 percent of the key holder price. a) Determine the economic order quantity (EOQ). (6 marks) b) What is the average number of key holder on hand. (3 marks) c) How many orders (number of orders) per year will be needed? (6 marks) d) Compute the total cost of ordering and carrying of key holder. (5 (5 marks) If PT Cikarang order quantity change to 360 unit, how much would that affect the total annual cost? (5 marks) 2. PT Cikarang, opened a gift shop which operates 52 weeks per year. Managing inventories has become a problem. Top-selling product is a key holder. sales are 18 units per week, and the price per unit is $60. Ordering cost is $45. Annual holding cost is 25 percent of the key holder price. a) Determine the economic order quantity (EOQ). (6 marks) b) What is the average number of key holder on hand. (3 marks) c) How many orders (number of orders) per year will be needed? (6 marks) d) Compute the total cost of ordering and carrying of key holder. (5 (5 marks) If PT Cikarang order quantity change to 360 unit, how much would that affect the total annual cost? (5 marks)
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