An automobile manufacturer uses about 60,000 pairs of bumpers (front bumper and rear bumper) per year,...

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An automobile manufacturer uses about 60,000 pairs of bumpers (front bumper and rear bumper) per year, which it orders from a supplier. It costs $3.00 to keep one pair of bumpers in inventory for one month, and it costs $25.00 to place an order. a. What is the EOQ? b. Write the annual carrying cost function. c. Write the annual ordering cost function. d. Write the annual total cost function. e. What is the significance of the EOQ? f. What is the total annual expense of ordering the EOQ every time? g. How many orders will be placed per year? An automobile manufacturer uses about 60,000 pairs of bumpers (front bumper and rear bumper) per year, which it orders from a supplier. It costs $3.00 to keep one pair of bumpers in inventory for one month, and it costs $25.00 to place an order. a. What is the EOQ? b. Write the annual carrying cost function. c. Write the annual ordering cost function. d. Write the annual total cost function. e. What is the significance of the EOQ? f. What is the total annual expense of ordering the EOQ every time? g. How many orders will be placed per year?

Answer rating: 100% (QA)

a D 60000 H 300 x 12 36 S 2500 EOQ Q 2DSH Q 2 x 60000 x 2... View the full answer