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ezto.mheducation.com + M Question.. 8 R R B O G Quiz 2- Fall 2024 i Saved Help Save & Exit Submit The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to hold a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four (4) days. Without allowing for safety stock, what reorder point should be used to reorder resin? 8 00:40:23 EOQ EOQ Discount Q* = 2DS 2(Annual Demand) (Order or Setup Cost) 2DS 2(Annual Demand) (Order or Setup Cost) H Annual Holding Cost Q* = 1 H Annual Holding Cost 0* TC* = D H + TC* = - H + D 2 2 OfS + RD The period between two orders=Number of days in a year /(D/Q.) Total number of orders per year =D/Q. EPQ ROP = d x LT+ Safety Stock TC = HQ (p - d) 2 S P 1+ 10 d Duration - of - Order - Cycle = 2; Run length =2; Imax = 2 (p -d) P 2 DS 20 = H d Mc Graw Hill