# 1 The daily demand of one product is 200 units. Ordering cost is 20 JD per order. The unit price…

1 The daily demand of one product is 200 units. Ordering cost is 20 JD per order. The unit price is 20 JD. Holding cost per unit per year is 20% of a unit price. The company operates 250 days per year.

a) What is the economic order quantity (EOQ)?
b) What is the number of orders per year? c) What is the expected time between orders?
d) What is the total annual cost of holding and ordering the inventory?
e) What is the average inventory level?
What is the maximum inventory level?
2) The annual demand of one product is 32,000 units. Holding cost per unit per year is 3 JD, and ordering cost is 120 JD per order. The company operates 320 days per year, and lead time is 6 days.
a) What is the economic order quantity (EOQ)?
b) What is the total annual cost of holding and ordering the inventory?
c) What is the re-order point?
Question 3 The monthly demand of one product is 1,000 units. Set up cost for a production run is 200 JD. The daily production rate is 100 units. Holding cost is 2 JD per unit per year. the company operates 300 days per year.
a) What is the optimal run size (EPQ)?
b) What is the minimum total annual cost of holding and set up?
c) What is the cycle time for the optimal run size?
d) What is the run time?
Question 4 The expected annual demand of one product is 816 units. Ordering cost is 12 JD per order. Holding cost is 4 JD per unit per year. The company received the following offer: Quantity (units) 1-49 Price (JD) 20

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