# Economic Order quantity EOQ, Economic Production Quantiry EPQ

Feb 3rd, 2012
Studypool Tutor
California Institute of Technology
Course: operations management
Price: \$5 USD

Tutor description

Objective 309.3.1-06: Determine order size using the economic order quantity model. Objective 309.3.1-07: Determine lot size using the economic production lot size model. A variety of criteria and techniques can be used to determine how many units of a product to purchase or produce and what parameters to set for inventory management. In this task, apply the economic order quantity model and the economic production lot model to related decisions. Given: Company A’s demand is uniform throughout the year and totals 18,000 units per year. Ordering costs total \$38 per order. The annual holding cost rate is 26% of the value of the inventory. The per-unit cost of inventory is \$12. Company B’s demand is uniform throughout the year and totals 15,000 units per year. The production setup costs total \$84 per setup. The annual holding cost rate is 28% of the value of the inventory. The per-unit cost of finished product is \$19. The production rate is constant and equivalent to 60,000 units per y

Showing Page: 1/2

## Review from student

Studypool Student
" <3 it, thanks for saving me time. "

1831 tutors are online

### Other Documents

02/03/2012
02/03/2012

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors