Question 1:

R
C
K
S
Q

$
$

1200
680.00
0.25
450.00
80

APC
AHC
AOC

$
$
$

816,000.00
6,800.00
6,750.00

TAIC

829,550.00

annual consumer demand for your products

cost to buy each unit of inventory
annual holding cost rate (in % per year)
cost to place each order
Optimal economic order quantity

Optimum Orders/year
Optimum time between orders

15
24.33

Question 2:
R
C
K
S
Order Quantity
1-299
300-499
500-799
800 +

$
$

1700
38.00
0.25
120.00

Price/Unit Discount Level EOQ Q* Inside Range?

$
38.00
0
207 Inside
$
37.24
1
209 Less Than
$
36.48
2
212 Less Than
$
36.10
3
213 Less Than

Number of orders/year

3.4

Number of days between orders

107

Modified EOQ
207
300
500
800

Modified TAIC
$66,568.76
$65,384.50
$64,704.00
$65,235.00

Question 3:
R
kxC

23000
1.90
320.00

Order Quantity Price/Unit Discount Level EOQ Q* Inside Range? Modified EOQ
2000-6999
$
47.00
0
2783 Inside
2783
7000-11999
$
43.00
1
2783 Less Than
7000
12000-19999
$
41.00
2
2783 Less Than
12000
20000 +
$
38.00
3
2783 Less Than
20000

Modified TAIC
$1,086,288.48
$996,701.43
$955,013.33
$893,368.00