Problem 1 In the basic economic order quantity (EOQ) model. if monthly demand is a constant 460 units, the order quantity is 168 (14 dozen), and the firm operates during 50 weeks and five-day week per year, the cycle time will be approximately : Problem 2 Consider a basic economic order quantity (EOQ) model with the following characteristics: Item cost: Item selling price: Monthly demand: Annual holding cost: Cost per order: Order lead time: Firm's work year: Safety stock: $16 $20 600 units (constant) 9% of purchase cost $18 5 days 300 days (50 weeks 6 days per week) 15% of monthly demand The optimal Order Quantity, Q* is Problem 3 Marching shop was ordering weekly demand for bolts and nuts 240 units. Ordering cost $50 per unit per year, Bolt and Nuts unit cost $15 and annual carrying charge is 20% No. of Assume 52 weeks per year and lead time is 1 week find reorder number of units (R). Problem 4 Consider a basic economic order quantity (EOQ) model with the following characteristics: Item cost: $25. Item selling price: $30. Weekly demand: 120 units (constant) Annual holding cost: 12% of purchase cost Cost per order: $150. Order lead time: 3 days Firm's work year: 312 days (52 weeks Safety stock: 10% of weekly demand 6 days per week) The optimal Reorder Point, R* Problem 5 Sport store is considering going to a different baseball bat supplier. The present supplier charges S10 bat and requires minimum quantities of 490 bats. The annual demand is 12,000 bats, the ordering cost is $20, and the inventory carrying cost is 20% of the bat cost, a new supplier is offering bats at 9 in lots of 4000. Who should be buy from? 6 In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must: A) Have the lowest total cost B) Have the largest quantity compared to other EOQ's C) Be to the left of the pricebreak quantity for that price, (For example, suppose that when the range of order quantity is from 10 to 20, the unit price is $1. Then, the left of the pricebreak quantity is 10 units for the price.) D) Be in a feasible range 7 Which of the following best describes Cycle Counting? A) A process to reduce cycle times B) Count to determine length of the production cycle C) Counting inventory on a pre-determined schedule D) Setup reduction to shorten cycle times 8 According to EOQ formula, if the ordering costs for an item are greatly reduced, what is the impact on the order quantity? A) Order quantities will decrease B) Order quantities will increase C) Order multiples will decrease D) Order multiples will increase 9 Based on the following information, what is the Order Point? Lead Time = 3 Weeks Demand/Week 200 Units Safety Stock - 1 Weeks' Supply Lot Size = 100 Units A) 700 B) 400 C) 500 D) 800 10 In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will: A B decrease by 50%. double. remain unchanged quadruple. C D