Course: MGMT 295 Global Materials Management Assignment 1 Course instructor: Durga Nageshwari Sathish Kumar 1. A company estimates their holding cost at 10% of per unit cost. Where per unit cost is $50. The Annual Demand is 50,000 Units and its ordering cost is $10 per order. a. What is most economic order quantity the company should place the order for? b. As per your calculated EOQ, How many orders the company should be placing every year? c. What will the total ordering cost incurred by the company if it has an annual demand of 50000 units? d. If it is deterministic demand model and lead time is zero. What is the ROP? e. If it is deterministic demand model and lead time is 10 days. What is the ROP? f. If the Annual Demand is increased by 20% ? What is the EOQ? g. If the Annual Demand is Increased by 20% ? As per your calculated EOQ. How many orders the company should be placing every year? h. If the Annual Demand is Increased by 20% ? What is the Annual ordering cost as per new EOQ? Note: Please round up to the nearest value while calculating EOQ if it is in Decimal and use the Round up value for further calculations. Eg: if you get EOQ as 100.25 then consider as 101. Please consider 30 days in a month for your calculation