Question: DO QUESTION 9!! 7. Given the following information, calculate the EOQ: 1. Annual demand = 2,000,000 2. Cost or ordering = $45 3. Carrying costs

DO QUESTION 9!! 7. Given the following DO QUESTION 9!!

7. Given the following information, calculate the EOQ: 1. Annual demand = 2,000,000 2. Cost or ordering = $45 3. Carrying costs = 25% EOQ = 2+(2,000,000 $45) 25% EOQ = 26832.82 or 26833 8. Using the information in #7 what is the number of annual orders? Annual Orders = D / EOQ = 2,000,000/26833 = 74.5 or 75 9. If the company in #8 uses exponential smoothing (smoothing factor = .7) and the forecast for the year is the figure they use for EOQ calculations, calculate the EOQ using the following information: 1. The cost of ordering and carrying cost % are the same as #7 2. Starting with 2018, Forecast the 2020 demand using exponential smoothing and then use that forecast as the annual demand. year sales 2017 | 1,000,000 2018 1,200,000 2019 2,000,000 2020

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