Question: Problem 4) A distributor of electric generators expects to purchase and sell 12,000 units of a certain model per year. Each unit is purchased at

Problem 4) A distributor of electric generators expects to purchase and sell 12,000 units of a certain model per year. Each unit is purchased at a cost of $2500 and has an annual carrying cost per unit of 15% of the purchase price. The ordering cost is estimated to be $140 per order. The distributor operates 250 days per year. 12 points a. Using the Basic EOQ Model, what is the distributor's optimal order quantity? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answer to an integer value using standard rounding if you calculate a fractional value. Qopt=H2DS= Where: Qeph= Optimal Order Quantity D= Annual Demand (units) S= Ordering Cost per Order H= Holding (Carrying) Cost per Unit per Year b. What is the total annual cost if the optimal quantity is ordered? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answers to integer dollar values using standard rounding if you calculate fractional values. Total Cost = Annual Ordering Cost + Annual Holding Cost TC=QDS+2QH= Where: Q= Order Quantity D= Annual Demand (units) S= Ordering Cost per Order H= Holding (Carrying) Cost per Unit per Year c. Based on that order quantity, how many times per year will the distributor place an order? Show your work below. Round your answer to one decimal point. d. What will the average inventory equal? Show your work below. Round your answer to one decimal point
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