QUESTION 1 Economic Order Quantity (EOQ) = Square root of (2 x D x A/ce) Economic Production Quantity (EPO) = Square root of (2 xDxA/ce) x Square root of (p/(p-u)) Matt Barkley wants to determine how many of a particular electronic component Samsung should produce. The annual demand for the component is stable and predicted to be 6,000. Each time Samsung manufactures the component in its plant, it pays a setup cost of $360. The plant has a daily production rate of 100 components and works for 300 days in a year. Samsung can produce cach component at a unit manufacturing cost of $240, and the unit inventory holding cost is 25% of this unit manufacturing cost. Determine the Economic Production Quantity (EPO) for Samsung 400 300 150 200 QUESTION 2 Total Cost: (for EOQ) = (D/Q X A+ (1/2) x Q x ce + DX Total Cost: (for EPQ) = (D/Q x A+(1/2) x Q x((p-u)/p) x ce + Dxc What is the annual Total Cost, C(Q, when EPQ is produced? 1,591,200 1,152,400 1,454,400 1,302,400 QUESTION 3 How long does it take for Samsung to produce its EPQ (in number of days)? 15 2 QUESTION 4 How long does it take for Samsung to complete an inventory cycle (consume its entire EPQ)? Again, your answer should be in number of days. 15 20 3 10 QUESTION 5 What is the maximum inventory? 4800 240 320 160 OOO