EOQ Homework Solution
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Nicholas Woo
May 6, 2011, 2:47:38 AM5/6/11
to collins-omis3...@googlegroups.com
Guys, here are my solutions - let me know if anyone obtains anything different:
a.) SQRT(2*1500*75,000 / 2.36) = 9,764.17 pounds where h = 8.67 * .18 = 1.56 + 0.80 = $2.36 per pound
b.) 9,764.17 / 75,000 = .1302 * 365 days = 47.5 days
c.) 75,000 * 10/365 = 2,054.71 pounds
d.) (75,000 * 1,500 / 9764.17) + 75,000 = $86,521.72 total annual ordering cost
(2.36 / 2) * (9,764.17) = $11,521.72 total annual holding cost
e.) (75,000 * 1,500 / 5,000) + 75,000 = $97,500 total annual ordering cost
(2.36 / 2) * (5,000) = $5,900 total annual holding cost
f.) (75,000 * 1,500 / 30,000) + 75,000 = $78,750 total annual ordering cost
(2.36 / 2) * (30,000) = $35,400 total annual holding cost
a.) SQRT(2*1500*75,000 / 2.36) = 9,764.17 pounds where h = 8.67 * .18 = 1.56 + 0.80 = $2.36 per pound
b.) 9,764.17 / 75,000 = .1302 * 365 days = 47.5 days
c.) 75,000 * 10/365 = 2,054.71 pounds
d.) (75,000 * 1,500 / 9764.17) + 75,000 = $86,521.72 total annual ordering cost
(2.36 / 2) * (9,764.17) = $11,521.72 total annual holding cost
e.) (75,000 * 1,500 / 5,000) + 75,000 = $97,500 total annual ordering cost
(2.36 / 2) * (5,000) = $5,900 total annual holding cost
f.) (75,000 * 1,500 / 30,000) + 75,000 = $78,750 total annual ordering cost
(2.36 / 2) * (30,000) = $35,400 total annual holding cost
Jonathan Carandang
May 6, 2011, 6:06:43 PM5/6/11
to Collins OMIS357 Spring 2011
I got totally different answers for all but part C.
Jonathan
Jonathan
Nicholas Woo
May 6, 2011, 7:31:30 PM5/6/11
to collins-omis3...@googlegroups.com
Thanks Jonathan. I actually re-did mine as well after Collins provided the revised guidance. I've attached my solutions which are consistent with yours. You may want to convert your part (b) as he asks for the cycle time in days, and not months.
alex smirnov
May 6, 2011, 9:07:53 PM5/6/11
to collins-omis3...@googlegroups.com
I got the same answers as Nick's revised
Ajay Goyal
May 8, 2011, 1:56:00 PM5/8/11
to collins-omis3...@googlegroups.com
Hi
Should the Total annual Orderding Cost be 5*1500?
order size is 16771
4*16771 = 67084 , and this is less than annual need of 75000
Or we are supposed to only calculate the avearge cost , because over a period of time this will average out?
thanks
ajay
gparant
May 9, 2011, 9:45:29 PM5/9/11
to Collins OMIS357 Spring 2011
I got the same answers as alex and nicholas.
On May 6, 6:07 pm, alex smirnov <alex.smir...@gmail.com> wrote:
> I got the same answers as Nick's revised
>
>
>
>
>
>
>
> On Fri, May 6, 2011 at 4:31 PM, Nicholas Woo <nicholasj...@gmail.com> wrote:
> > Thanks Jonathan. I actually re-did mine as well after Collins provided the
> > revised guidance. I've attached my solutions which are consistent with
> > yours. You may want to convert your part (b) as he asks for the cycle time
> > in days, and not months.
>
> > On Fri, May 6, 2011 at 3:12 PM, Jonathan Carandang <joncarand...@yahoo.com
On May 6, 6:07 pm, alex smirnov <alex.smir...@gmail.com> wrote:
> I got the same answers as Nick's revised
>
>
>
>
>
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> On Fri, May 6, 2011 at 4:31 PM, Nicholas Woo <nicholasj...@gmail.com> wrote:
> > Thanks Jonathan. I actually re-did mine as well after Collins provided the
> > revised guidance. I've attached my solutions which are consistent with
> > yours. You may want to convert your part (b) as he asks for the cycle time
> > in days, and not months.
>
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