Carl Ivan A. Paulo
Assignment Answers
Problem 1
Annual usage: 8000 boxes of syringe
Cost of ordering: 10,250 per order
Annual holding cost: 1000 pesos per year
Lead time: 5 days
Answer:
EOQ:405
EOP: 110
ROT: 18
Conclusion:
For maximum financial benefit and storage space utilization, order 405 syringes each time the inventory drops to 110 (about every 18 days)
Problem 2
Annual usage: 2000 boxes of red top tubes
Cost of ordering: 4350 per order
Annual holding cost: 2000 pesos per year
Lead time: 10 days
Answer:
EOQ: 93
EOP: 55
ROT: 17
Conclusion:
For maximum financial benefit and storage space utilization, order 93 boxes of red top tubes each time the inventory drops to 55 (about every 17 days)
Problem 3
Annual usage: 12000 boxes of glass slides
Cost of ordering: 9850 per order
Annual holding cost: 6000 pesos per year
Lead time: 15 days
Answer:
EOQ: 198
EOP: 493
ROT: 6
Conclusion:
For maximum financial benefit and storage space utilization, order 198 boxes glass slides each time the inventory drops to 493 (about every 6 days)
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