PRACTICE PROBLEMS FOR CONSTRAINTS 1 A retailer sells three products A, B, and C details of which are shown in the table below Assume a carrying rate of 30 per year a What would be the economic lot size if the retailer does not want to invest more than P10,000 in these three products at one time b What would be the lot size if you assume the ratio of the unit cost of the product to its carrying cost is constant Parameters Product A Product B Product C Annual demand 12,000 15,000 35,000 Ordering cost P30 P35 P50 Unit cost P50 P30 P10 2 The table below shows the inventory parameters of three products that are sold by a retail firm What would be the economic lot size if the firm has a storage constraint of 18,000 cubic feet Parameters Product A Product B Product C Annual demand 12,000 15,000 35,000 Ordering cost P30 P35 P50 Unit cost P50 P30 P10 Space required 10 20 30 3 The table below shows the inventory parameters of three products that are sold by a retail firm The senior management of the firm is concerned about high ordering costs, and in order to contain it has imposed a restriction on the number of orders to 12 per year Compute the optimal and feasible order quantities if the ordering cost is P50 per order Parameters Product A Product B Product C Annual demand 450 325 750 Unit cost P32 P12 P18 Carrying rate 0 25 0 25 0 25 PRACTICE PROBLEMS FOR CONSTRAINTS 1 A retailer sells three products A, B, and C details of which are shown in the table below Assume a carrying rate of 30 per year a What would be the economic lot size if the retailer does not want to invest more than P10,000 in these three products at one time b What would be the lot size if you assume the ratio of the unit cost of the product to its carrying cost is constant Parameters Product A Product B Product C Annual demand 12,000 15,000 35,000 Ordering cost P30 P35 P50 Unit cost P50 P30 P10 2 The table below shows the inventory parameters of three products that are sold by a retail firm What would be the economic lot size if the firm has a storage constraint of 18,000 cubic feet Parameters Product A Product B Product C Annual demand 12,000 15,000 35,000 Ordering cost P30 P35 P50 Unit cost P50 P30 P10 Space required 10 20 30 3 The table below shows the inventory parameters of three products that are sold by a retail firm The senior management of the firm is concerned about high ordering costs, and in order to contain it has imposed a restriction on the number of orders to 12 per year Compute the optimal and feasible order quantities if the ordering cost is P50 per order Parameters Product A Product B Product C Annual demand 450 325 750 Unit cost P32 P12 P18 Carrying rate 0 25 0 25 0 25

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Question: PRACTICE PROBLEMS FOR CONSTRAINTS 1.A retailer sells three products - A, B, and C - details of which are shown in the table below. Assume

PRACTICE PROBLEMS FOR CONSTRAINTS

1.A retailer sells three products - A, B, and C - details of which are shown in the table below. Assume a carrying rate of 30% per year.

a.What would be the economic lot size if the retailer does not want to invest more than P10,000 in these three products at one time?

b.What would be the lot size if you assume the ratio of the unit cost of the product to its carrying cost is constant?

Parameters

Product A

Product B

Product C

Annual demand

12,000

15,000

35,000

Ordering cost

P30

P35

P50

Unit cost

P50

P30

P10

2.The table below shows the inventory parameters of three products that are sold by a retail firm. What would be the economic lot size if the firm has a storage constraint of 18,000 cubic feet?

Parameters

Product A

Product B

Product C

Annual demand

12,000

15,000

35,000

Ordering cost

P30

P35

P50

Unit cost

P50

P30

P10

Space required

3.The table below shows the inventory parameters of three products that are sold by a retail firm. The senior management of the firm is concerned about high ordering costs, and in order to contain it has imposed a restriction on the number of orders to 12 per year. Compute the optimal and feasible order quantities if the ordering cost is P50 per order.

Parameters

Product A

Product B

Product C

Annual demand

450

325

750

Unit cost

P32

P12

P18

Carrying rate

0.25

PRACTICE PROBLEMS FOR CONSTRAINTS

1.A retailer sells three products - A, B, and C - details of which are shown in the table below. Assume a carrying rate of 30% per year.

a.What would be the economic lot size if the retailer does not want to invest more than P10,000 in these three products at one time?

b.What would be the lot size if you assume the ratio of the unit cost of the product to its carrying cost is constant?

Parameters

Product A

Product B

Product C

Annual demand

12,000

15,000

35,000

Ordering cost

P30

P35

P50

Unit cost

P50

P30

P10

2.The table below shows the inventory parameters of three products that are sold by a retail firm. What would be the economic lot size if the firm has a storage constraint of 18,000 cubic feet?

Parameters

Product A

Product B

Product C

Annual demand

12,000

15,000

35,000

Ordering cost

P30

P35

P50

Unit cost

P50

P30

P10

Space required

Parameters

Product A

Product B

Product C

Annual demand

450

325

750

Unit cost

P32

P12

P18

Carrying rate

0.25

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