Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- Download: http://solutionzip.com/downloads/knutson-products-inc/
- Knutson Products, Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs:
- 1. Orders must be placed in round lots of 100 units
- 2. Annual unit usafe is 250,000. (assume a 50 week year in your calculations)
- 3. The carrying cost is 10 percent of the purchase
- 4. The purchase price is $10 per unit
- 5. The ordering cost is $100 per order 6. The desired safety stock is 5,000 units. (this does not include delivery time stock)
- 7. The delivery time is 1 week
- Given the following information:
- a. Determine the optimal EOQ Level?
- b. How many orders will be placed annually?
- c. What is the inventory order point?
- d. What is the average inventory level?
- e. What would happen to the EOQ if annual unit levels doubled?
- f. If carrying costs double, what would happen to the level of EOQ?
- g. if ordering costs double, what will happen to the level of EOQ?
- h. If the selling price doubles, what will happen to the EOQ? Whatβs the elasticity of EOQ with respect to selling price?
- Download: http://solutionzip.com/downloads/knutson-products-inc/
Add Comment
Please, Sign In to add comment