Spring 2018-Exam 2 oo , and the annual holding cost is 20% of the value of the i

Question

Spring 2018-Exam 2 oo , and the annual holding cost is 20% of the value of the item. Anani elindeiran puer eo order quantity? units, and the order cost is $150 per order. What is the ap B.70 C. 110 D. 183 E. 600 18. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in per unit per year for A. $2.00 B. $3.00 C. $4.00 D. $6.00 ventory (carrying and setup) cost is $800. What is the inventory carrying cost this item? E. $8.00 19. A service garage uses 150 boxes of cleaning cloths a year. The boxes cost $8 each. Ordering cost is $3 and holding cost is 20 percent of purchase cost per unit on an annual basis. Determine the total costs of the cleaning cloths A. $2 B. $54 C. $38 D. $46 E. $62 S18-BA360-Exam 2-D

Explanation / Answer

17) EOQ = (2*10000*150/200)^0.5 = 122 Answer: (A) 18) We have 800 = (400/2)*c, where c is the unit carrying and set up cost. Therefore c = 800*2/400 = 4 Answer: (C) 19) Total cost of cleaning cloths = (2*150*3*1.6)^0.5 = 38 Answer: (C)

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