A product whose EOQ is 40 experiences a increase in ordering cost from $10 per o

Question

A product whose EOQ is 40 experiences a increase in ordering cost from $10 per order to $90 The revised EOQ is a. three times as large b. one-thirdas large c. nine times as large d. one-ninthas large e. cannot be determined , For a certain item, the cost-minimizingorder quantity obtained with the basic EOQ model was 200 units and the total annual inventory (carrying and setup) cost was $400. The inventory carrying cost per unit per year for this item is a. $1.50 b. $2.00 c. $3.00 d. $150.00 e. not enough data to determine A product has demand of 2000 units per year. Ordering cost is $10 and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizingsolution for this product will S. cost per year in total annual inventory costs a. $400 b. $800 c. $1200 d. zero; this is a class C item e. cannot be determined because unit price is not known lG. The General Chemical Company uses 150,000 gallons of hydro chloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. The firm uses the chemical at a constant rate throughout the year. It takes 5: days to receive an order once it is placed. The reorder point is A) 7,500 gallons B) 25,000 gallons C) 90,000 gallons D) 105,000 gallons No-re: Asrume 30- d-y a month and a 360- den ea 7. )The General Chemical Company uses 150,000 gallons of hydro chloric acid per month. The

Explanation / Answer

Q13. Answer E. It can not be determined.

Q14. Option C. $3.00

Q 15. Option A. $400

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