Hampers n Co is a manufacturing company that produces plastic bottles.The company uses the Economic Order Quantity
Question:
Hampers n Co is a manufacturing company that produces plastic bottles. The company uses the Economic Order Quantity method for plastic raw materials. Currently the company requires and orders 6,000 square meters per quarter. Other data related to wool fabric raw materials are as follows.
The ordering fee is Rp. 640,000 per year. Orders are made 4 times a year.
Carrying costs are 10% of the average investment in inventory.
The purchase price for wool fabric from the supplier is IDR 30,000 per meter.
Lead time is 3 business days.
The highest monthly usage in 2023 is 20% of normal monthly usage (1 month 20 working days)
Requested:
Calculate EOQ.
Calculate the total ordering costs and total holding costs per year.
Calculate the order frequency in 2020.
Calculate the amount of safety stock.
Calculate the Reorder Point.
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman