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1. Consider a piecemeal replenishment situation where the production rate is 100 units per day, the demand (consumption) rate is 4 units per day, and the economic production lot size is 500 units. Which of the following statements is true?
2. An item experiences an annual demand of 7,200 units. It costs $8.00 to hold the item in inventory for one year and $16.00 to place an order. If the EOQ model is used, what is the time between orders?
3. Annual demand for a product is 1,600 units, and the holding cost is $2.00 per unit per year. The cost of setting up the production line is $25.00 . There are 200 working days per year. The production manager decided to produce 200units each time she started production. If it takes her 4 days to produce the 200 units, what was her production rate?
4. Judith Thompson is the manager of the student center cafeteria. She orders frozen pizzas and bakes them on the premises. She anticipates a weekly demand of ten (10) pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15.00 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas Judith should order?
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It normally relies on departmental forecast and preregistration resords to determine how many copies of a text are needed. Preregistration show 90 operations management students enrolled.
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