Question 9 (6 Marks):

Problem 12.5

William Bevilles computer training school, in Richmond, stocks workbooks with the following characteristics:

Demand D = 19,500 units / year

Ordering Cost S = $25 / order

Holding Cost H = $4 / unit / year

a) Calculate the EOQ for the workbooks

b) What are the annual holding costs for the workbooks?

c) What are the annual ordering costs?

Question 9 (3 Marks):

Answer Problem 14.1

You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of materials. How many units of each do you need.

Answer Problem 14.1 You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of materials. How many units of each do you need. K(1) 1 LO Mai