Problem 1. Jos Romn is the purchasing manager for the headquarters of a large chain of insurance companies with a central inventory operation. Jose's fastest moving inventory item has a demand of 6,000 units per year. The cost of each unit is $ 100, and the maintenance cost is $ 10 per unit per year. Average ordering cost is $ 30 per order. It takes about 5 days for an order to arrive. (This is a corporate operation and there are 250 business days per year.) (10 points) 1. How much is the EOQ? Response units. 2. How much is the Annual Cost of Ordering (AOC)? Answer dollars. 3. What is the annual maintenance cost (AHC)? Answer dollars. 4. What is the Annual Product Cost (APC)? Answer dollars. 5. What is the total annual inventory related cost (ATC)? Answer dollars. 6. What is the number of orders per year? Orders response 7. What is the expected time between each order? Reply days. 8. What reorder point (ROP)? Reply days.

Problem 2. A Shell de Puerto Rico concessionaire buys 50,000 liters of gasoline per month to sell to its customers. The cost of placing each order is $ 200 and the delivery time is one week (0.25 months). Each liter costs $ 0.50 and the inventory rate is 30%. A discount will be applied if the dealer orders 100,000 liters in each order. The cost per liter would change to $ 0.45 and the delivery time would change to one month. 1. What should be your order quantity? (20 points) The amount of gasoline to buy for each order based on the EOQ model is Response. 2. What are the total costs if they don't take the discount? The total annual cost if you do not take the discount is Answer. 3. What are the total costs if they take the discount? The total annual cost if you take the discount is Answer 4. Provide the optimal inventory policy: Q = Answer R = Answer

Problem 3. Resplandece Manufacturing Company, in Carolina, Puerto Rico, manufactures flashing light bulbs for toys. The company operates its production plant 300 days a year. It has orders for around 12,000 intermittent bulbs a year and has the capacity to produce 100 bulbs per day. Bulb production setup costs $ 50. The cost of each bulb is $ 1. The cost of storage is $ 0.10 per bulb per year. (5 points) 1. How much is the EPQ? Response units. 2. How much is the Annual Cost of Ordering (AOC)? Answer dollars. 3. What is the annual maintenance cost (AHC)? Answer dollars. 4. What is the Annual Product Cost (APC)? Answer dollars. 5. What is the total annual inventory related cost (ATC)? Answer dollars.