This question will have you calculating 2 EOQ, ROP and Total Cost values and interpreting the results. For both EOQ and ROP values, give your final answer in full sock sets (ROUND UP to the next whole number). The specific questions to answer are based in parts a-c. Tips to solve the EOQ and ROP are given below in bullet points.

b) Calculate the EOQ and ROP based upon actual demand for FY2019

Demand Characteristic Annual demand, units Average weekly demand, units Variance of weekly demand, units FY 2018 18,000 375 90 FY 2019 20,000 417 100 Year Demand Weighted Moving Average Exponential Forecast 2018 18000 18200 18780 2019 20000 18400 18078 2020 19200 19808 Weighted moving average forecast = Wt*Demand in 2019+Wt-1 *Demand in 2018 = 0.6*2000+0.4*18000 = 19200 Forecast in 2020 = 0.9*20000+0.1*18078 = 19807.8 rounded to 19808 Demand Characteristic Annual demand, units Average weekly demand, units Variance of weekly demand, units FY 2018 18,000 375 90 FY 2019 20,000 417 100 Year Demand Weighted Moving Average Exponential Forecast 2018 18000 18200 18780 2019 20000 18400 18078 2020 19200 19808 Weighted moving average forecast = Wt*Demand in 2019+Wt-1 *Demand in 2018 = 0.6*2000+0.4*18000 = 19200 Forecast in 2020 = 0.9*20000+0.1*18078 = 19807.8 rounded to 19808