Question: Need well defined and detailed solution to all parts Problem IC4 (2B) Use of EOQ (EPQ) Model li in Determining the Size of Production Lots

Need well defined and detailed solution to all parts Need well defined and detailed solution to all
Problem IC4 (2B) Use of EOQ (EPQ) Model li in Determining the Size of Production Lots The Call-Us Plumbing Supply Company has an adjacent production department that could produce the \#3925 valve. If the valves were produced in-house in production lots, they would flow gradually into inventory at the main warehouse for use. The carrying cost, ordering or setup cost, and annual demand would remain about the same. Because the valves actually flow into inventory rather than being received all at once as a batch, Mr. Rao wonders how this would affect the order quantity and annual stocking cost. Sunil develops these estimates: D=10,000 valves per year, C=Rs0.40 per valve per year, S=Rs5.50 per order, d=40 valves per day (10,000 valves per year +250 working days), and p=120 valves per day. Assist Sunil in the analysis of the new total annual stocking cost \& for the new Economic order quantity

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