Operations and Supply Chain Management - Report

Running head: REPORT 0
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
MARCH 4, 2020
STUDENT DETAILS:

REPORT 1

REPORT 2
Question 1: $625 places an order cost of holding one year is $130.total annual
demand 1500 units. never to have stockouts of the laptops. The store is open 364
days.
a) Economic order quantity per order
b) Total annual inventory costs
c) The number of orders per year
d) The time between orders (in working days)
Answe
r 1:
1 (a)
Calculation of Economic order quantity
(EOQ) per order -
EOQ = √((2CoD)/Cc )
EOQ = √((2*1500*625)/130)
EOQ= √14423.076
EOQ = 120.096 or 120 units
Therefore, economic order quantity is 120
units.
1 (b) Calculation of annual inventory cost -
Total Cost = CoD/Q + CcQ/2
Total cost = (1500*625/120) + (120*130)/2
Total cost = 15612.5
Therefore, the annual inventory cost will be
$ 15612.5.
1 ©
Calculation of number of orders per year
-
Number of orders per year = D/EOQ
Number of orders per year = 1500/120
Number of orders per year = 12.5
Therefore, total numbers of orders per year
will be 12.5.
1 (d) calculation of time between orders (TBO)