need right answer

2DC iC p-d (3.13) We can now use Eq. 3.13 to solve Rosetta's order quantity problem (see Box at the beginning of this chapter) if the supplies are delivered gradually at some uniform rate and not all in one lot. Referring to the running example, we know that Oxxa, the supplier, delivers vegetable oil at the rate of 24 liters a day. We also know that the annual demand for vegetable oil is 7200 liters, or daily consumption of vegetable oil is 20 liters. We now have the following information with us that we could use to solve this problem: Order cost C, is $80 per order. The purchase price (cost) of vegetable oil (C)is $20 per liter. The inventory holding rate (i) is 30% per year. The demand is fairly constant at 7200 liters per year (or demand is 20 liters per day). The supplier supplies vegetable oil at the rate of 24 liters per day. Substituting the above in Eq. 3.13, we get Q= 2 x 7200 x 80 0.3 x 20 24 24 - 20 = 1073 The EOQ in this case would be 1073 liters compared to 438 liters if all units are delivered in one go. The TIC can be determined using Eq. 3.12. (It should be noted that we ignore the purchasing cost term.) Substituting the values in the equation, we get 7200 TICE x 80+ 1073 24 - 20 24 1073 X x 0.3 x 20 = $1073 2 Table 3.1 summarizes the solution for Rosetta's vegetable oil ordering problem. By adopting a gradual supplies strategy, Rosetta's will be able to save $1556 every cycle. In percentage terms, the saving would be 2629 - 1073 = 59%savings 2629 h9 Consilnpith suffought-out item in a manufacturing organization is 100 per day. The supplier supplies this item to the manufacturer at the rate of 300 per day. If the 3. Deterministic Inventory Models Table 3.1 EOQ and TIC for Rosetta's inventory management problem Order filled immediately Order filled gradually EOQ 438 units 1073 units TIC $2629 $1073 carrying cost is $0.1 per item per day and the ordering cost is $250 per order, compute the EOQ for this item