This is quantative analysis dealing with supply chain.

Problem 2 Given the below data set, calculate the optimal production batch size, the annual set up and holding costs for the optimal policy 2,508 Input Annual demand, D Production rate, P Cost per unit, Holding cost, h Fixed cost per order, S Optimal Lot Size Economic production quantity, y, a Number of setups per year Annual setup cost Annual holding cost Cycle inventory value) 1050 x $350 = $367500 I) Armual Holding Cost = EoRx h = 2099 $70 2 2 - $73465 Total Inventory Cost = TC TC - PC toc+HC PC = Perchase Oost, OC= ordering cost, HC = Holding Cost PC = unit purchase Cost * annual demand PC = $350 +38556= $ 13,494,600 OC = annual demand * Oost per order order quantity OC- 38 556 X $ 4000 - 73474.98 2099 oc$73475 HC = annual unit holding cost order quantity $70 X 2099 HC HC = $73465 TC = $13,494,600+ $ 734 75+ $73465 TC -$13,64 1,540 Problem 2 Given the below data set, calculate the optimal production batch size, the annual set up and holding costs for the optimal policy 2,508 Input Annual demand, D Production rate, P Cost per unit, Holding cost, h Fixed cost per order, S Optimal Lot Size Economic production quantity, y, a Number of setups per year Annual setup cost Annual holding cost Cycle inventory value) 1050 x $350 = $367500 I) Armual Holding Cost = EoRx h = 2099 $70 2 2 - $73465 Total Inventory Cost = TC TC - PC toc+HC PC = Perchase Oost, OC= ordering cost, HC = Holding Cost PC = unit purchase Cost * annual demand PC = $350 +38556= $ 13,494,600 OC = annual demand * Oost per order order quantity OC- 38 556 X $ 4000 - 73474.98 2099 oc$73475 HC = annual unit holding cost order quantity $70 X 2099 HC HC = $73465 TC = $13,494,600+ $ 734 75+ $73465 TC -$13,64 1,540