MBA $512$ Homework Assignment $$ H$2-$B

Chapter $9$Forecasting and Demand Planning

Enter Student Name: $0$

PROBLEM #$3$

"Using the data below, find the EOQ, and the total annual cost associated with the economic order quantity, and the reorder point.

$($You must show all formulas, calculations, and $""$highlight$""$ corrrect Answers$)"$

Annual Demand: $8000$ per year

Weeks Operating: $52$ per year

Ordering Cost: $$35\mathrm{.}00$ per order

Holding Cost: $$4\mathrm{.}00$ per unit$-$year

Lead$-$Time: $3$ weeks

ANSWER

a$.$ EOQ

b$.$ Total Annual Costs $($to be minimized$)$

c$.$ ROP $($Reorder Point$)$