Week 3 Questions Operations Management

timer Asked: May 13th, 2014

Question description


Chapter 6 Questions:

The current order of quantity for Paul’s Pasta
Pinwheels is 200 boxes. The order cost is $4 per order, the holding cost is
$0.40 per box per year, and the annual demand is 500 boxes per year.

a.) Calculate the annual holding cost plus the
annual ordering cost to get the total annual cost when using an order quantity
of 200 boxes.

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

Hottenstein, Giffith, and Hult, attorneys at
law, do a great deal of printing. The firm uses a single type of printer with
annual demand for print cartridge’s of 480 per year. The order cost is $15 per
order, and the carrying cost is 20 percent per cartridge per year of the
purchase cost of $35 per cartridge.

a.) How many print cartridge’s should be firm order
at one time?

b.) What is he time between orders?

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