# The current order quantity for Electric Powerbars is 100 bars. The order cost is $10 per order,

## Question:

a. Calculate the annual holding cost plus the annual ordering cost to get the total annual cost when using an order quantity of 100 bars.

b. Calculate the EOQ and the total annual cost for this order quantity.

c. How many orders per year are necessary when Q = 100? How many orders per year are necessary for the EOQ in part b?

d. Graph the annual inventory cost (IC) using MS Excel. Show the holding cost, ordering cost, and total inventory cost as a function of order size Q.

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**Related Book For**

## Operations and Supply Chain Management for the 21st Century

**ISBN:** 978-1111225292

1st edition

**Authors:** Ken Boyer, Rohit Verma