Question: ***DO NOT COPY THE ANSWER FROM OTHER POSTS, THEY WERE WRONG AND GOT DOWNVOTED*** Sawasaki Inc. currently requires exactly 600 mufflers per month for their

***DO NOT COPY THE ANSWER FROM OTHER POSTS, THEY WERE WRONG AND GOT DOWNVOTED***
Sawasaki Inc. currently requires exactly 600 mufflers per month for their stereo systems. They currently order 900 mufflers in every order. The contracted price for mufflers is $20 per unit and they have calculated the storage and other inventory holding costs to be 30% of the price per year per item. Other costs associated with ordering (per order) are: Answer the questions 1 to 18 based on the above information 1. What is the yearly demand? 2. How many orders will Sawasaki place in a year (up to 2 decimal places)? 3. How often will they order (in weeks)? 4. Under the current ordering policy (Q=900) what is the total ordering cost per year? 5. Under the current ordering policy (Q=900) what is the total holding cost per year? 6. Under the current ordering policy (Q=900) what is the total material cost per year? 7. Under the current ordering policy (Q=900) what is the total inventory cost per year? 8. If Sawasaki decides to order as per the EOQ policy, how much should they order? 9. Under EOQ what is the total ordering cost per year? 10. Under EOQ what is the total holding cost per year? 11. Under EOQ what is the total inventory cost per year? 12. How much amount does Sawasaki save by switching to EOQ based ordering? 13. The suppliers increase the cost of mufflers by 20%. What should the new EOQ be? 14. In general, if the material price increases, what should the impact on EOQ quantity be? 15. Because of better planning Sawasaki is able to reduce the holding cost to 25.5% (instead of 30% ) of the price per year per item. What should the new EOQ be? 16. In general, if the cost of holding decreases, what should the impact on EOQ quantity be? 17. By negotiation with transporters, Sawasaki is able to reduce the transportation cost associated with an order by $50. What should the new EOQ be? 18. In general, if the ordering costs increase, what should the impact on EOQ quantity beStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
