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)