Material Management

Material Management

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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