Exercise 1

William Beville's computer training school, based in Richmond, stocks exercise books with the following features.

DATOS
Demand (D) 19500 Units per year
Cost per order (S) $25 Per order
Cost to maintain (H) $4 Per unit per year

a) Calculate the EOQ (Q*) for the workbooks

√2𝐷𝑆/𝐻
Q=
La cantidad óptima a ordenar es de 494 piezas por pedido.
=RAÍZ((2*19500*$25)/$4) = 493.71

b) What are the annual costs for maintaining the workbooks?

𝑄/2 𝐻
Tm=

=(494/2)*$4 = $987.42 El costo anual por mantener es de $987.42.

c) What are the annual costs for ordering?

𝐷/𝑄 𝑆
Ts=
El costo anual por ordenar es de $987.42.
=(19500/494)*$25 = $987.42
Exercise 2
If D= 8,000 per month, S= $45 per order, and H= $2 per unit per month, what is the financial amount to order?

DATOS
Demand (D) 96000 Units per year
Cost per order (S) $45 Per order
Cost to maintain (H) $24 Per unit per year

√2𝐷𝑆/𝐻
Q=
La cantidad óptima a ordenar es de 600 piezas por pedido.
=RAÍZ((2*9600*$45)/$24) = 600
Exercise 3
Henry Crouch’s law firm usually orders 60 units of spare ink at a time. The company estimates
The assumptions of the basic EOQ model are applicable.

For what value of the cost of ordering will your action be optimal?
The company estimates that the costs per drive are 40% of the $10 unit cost, and the annual demand is around 240
mand is around 240 units.
Exercise 4
Madeline Thimes' Dream Store sells waterbeds and related items. The annual demand for its b

a)To minimize total cost, how many units should be ordered each time an order is placed?

b) If the holding cost out of $ 6 per unit instead of $ 5, What would be the optimal quantity to o
nual demand for its best-selling bed is 400 units. The cost to order is $ 40, while the cost to maintain is $ 5 per unit p

order is placed?

optimal quantity to order?

tain is $ 5 per unit per year.