Question 2

Inputs
Annual demand (in units) D 4500
Production capacity P 10000
Fixed cost per order S € 50.00
Holding cost H € 5.00

Outputs
EPQ Q 405

Setup cost € 556.21

Holding cost € 556.21
Total cost € 1,112.43
Question 3

Inputs
Fixed cost per order in USD S 350
Fixed cost per drop in USD Si 50
Holding rate h 25%
Capacity in liters K 40000
Cost per item in USD C 1

Customers Demand per month

Small 6 1000
Medium 3 6000
Large 1 12000

Outputs
n (ignoring capacity limits) 7.97
n (taking capacity limits into account) 10.8
Total demand per year
72000
216000
144000
Inputs
Fixed cost per order S 800
Fixed cost per drop Si 250
S* 1050
Cost per item C $ 10,000.00
Customer type Annual demand
Large 60
Medium 24
Small 8
holding cost h 25%
Truck capacity K 12

Output Step 1 (ni) Step 2 Step 3 Step 4

Large 60 8.5 17.3 1
Medium 24 5.3 11.0 1
Small 8 3.1 6.3 2