Question: please solve it thanks Previous Page Next Page Page 7 of 9 Question 12 (35 points) HAL Ltd. uses disk drive housings at a rate

please solve it thanks please solve it thanks Previous Page Next Page
Previous Page Next Page Page 7 of 9 Question 12 (35 points) HAL Ltd. uses disk drive housings at a rate of 1 = 720 units per year. The cost of purchasing each housing is c = $100 and the cost of initiating an order is K = $400. Assume an annual interest rate of/ = 32 percent for determining the holding cost, and there is no order lead time. (a) Calculate the EOQ quantity Q. (20 pts) (b) Now assume the disk drive housings are produced internally, instead of purchasing from an outsider supplier. The production rate is P = 1,230 units per year and the cost to initiate a production run is also K = $400. All other information remain the same. For this finite production rate case, calculate the optimal quantity to produce in each cycle. (15 pts) D - Paragraph BI U

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!