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Suppose you are working as an inventory manager with Walmart. You are assigned with the taskto determine EOQ for a batch of order containing three different items. The respective annualdemand for these itemsis 1000, 2000, and 3000 units respectively. The cost of item 1,2, and 3 are50, 100, and 80, respectively Order cost for each item is also differentie 150 for Item 1, 140 forItem 2, and 130 for Item 3. The maximum arrı ount that can be used for purchasing the goods are$25,000 (Note that it includes the total cost of cach item multiplied by their respective EOQamount) and inventory holding cost for the company is 0 10 per unit Avoiding the basicassumption of EOQ, i.e. only a single item should be considered in a single or der, determine theoptimal order quantity for each items(A) 101,97, 128(B) 95, 107, 120(C) 105, 77, 178(D) 75, 154. 180 |
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Answer» Answer: Suppose you are WORKING as an inventory manager with Walmart. You are ASSIGNED with the task to determine EOQ for a batch of order containing three different items. The respective annual demand for these itemsis 1000, 2000, and 3000 units respectively. The cost of item 1,2, and 3 are 50, 100, and 80, respectively Order cost for each item is also differentie 150 for Item 1, 140 for Item 2, and 130 for Item 3. The maximum arrı ount that can be used for purchasing the goods are $25,000 (Note that it includes the total cost of cach item multiplied by their respective EOQ amount) and inventory holding cost for the company is 0 10 per unit Avoiding the basic assumption of EOQ, i.e. only a single item should be considered in a single or der, determine the optimal order quantity for each items |
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