Chapter 6: Inventory Analysis homework exercises (w/ check figures)

Problem 6.1
a) Q = 10,000 units
b) 5 times per year

Problem 6.2
a) $20,186,171..88
b) EOQ = 647.11 (rounded up to 648, savings = $56,749.96

Problem 6.3
a) TC = $239.670 (assuming 52 weeks)
b) Q = 152.97 (rounded to 153), TC = $238,589.12
c) Current policy = 10.4 turns per year
Proposed policy = 20.4 turns per year

Problem 6.4
Should reduce fixed costs to $15.625

Problem 6.6
a) Q = $35,327.04
b) Fill ATM 17.66 times per year

Problem 6.8
a) Q = 979.8 (rounded to 980)
b) Should reduce setup to $62.50

Problem 6.10
a) Q = 3,000 units per outlet, total ave. inventory for ALL outlets totals 6,000 units
b) S = $1,800, centralized demand yields Q = 8,585.28 (rounded to 8,586), total ave.
inventory = 4,234 (1,061 per outlet)