Explain what will happen to the eoq, Operation Management

Assignment Help:

Part 1:

A company is using the Economic Order Quantity (EOQ) model to manage its inventories. Suppose its inventory holding cost per unit per year doubles while the annual demand and the ordering cost per order do not change. What will happen to the EOQ?

Part 2:

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. (Note: The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.


Related Discussions:- Explain what will happen to the eoq

Explain phases in a project life cycle, An important factor used to determi...

An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. True or False

Explain measuring the impact of a capital acquisition, Measuring the impact...

Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

Describe why financial objectives essential for the company, Why do financi...

Why do financial objectives essential for the company to succeed?

Define what kind of industries does a localization strategy, What kind of i...

What kind of industries does a localization strategy makes sense? Why? When does a global standardization strategy make most sense? Why?

Explain the advantages of franchising, Of all the advantages of franchising...

Of all the advantages of franchising, which one would appeal to you as an entrepreneur? Which disadvantages would you dislike the most and why?

Define why is it deemed necessary to protect the environment, Why is it dee...

Why is it deemed necessary to protect the environment? What does it mean to society? To business? To the individual? To future populations?

Explain ensures goals and satisfaction, All of the following items describe...

All of the following items describe the sponsor's responsibilities for the project EXCEPT: A. Defines performace / success criteria B. Selects a manageable set of project to

Attitudes as well bargaining behaviours of the participants, Do you think t...

Do you think the attitudes and bargaining behaviours of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditi

Calculate seasonal index for all quarter, The number of visitors at a theme...

The number of visitors at a theme park by season and year has been recorded and is given in the following table: Quarter 2003 2004 2005 2006 Winter 45 46 35 16 Spr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd