case assignment
hbouhamad
ex_11-5.xlsxSheet1
| Exercise 11-5 | ||
| Input | ||
| Annual demand, D | 240,000 | |
| Cost perunit, C | $ 100.00 | |
| Holding cost, h | 20% | |
| Fixed cost per order, S | $ 4,000.00 | |
| Optimal order policy | ||
| Optimal batch size, Q* | 9,798 Sunil Chopra: Sunil Chopra: Use EOQ formula. Q* = sqrt(2DS/hC) |
|
| Annual holding cost | $ 97,979.59 | |
| Annual order cost | $ 97,979.59 | |
| Total annual cost | $ 195,959.18 | |
| Desired Order Size of 2,500 | ||
| Desired optimal order size, Q* | 2500 | |
| Required fixed cost S* | $ 260.42 Sunil Chopra: Sunil Chopra: S* = (Q*)^2*H/(2D) |
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Sunil Chopra: Sunil Chopra: Use EOQ formula. Q* = sqrt(2DS/hC) |
