Now suppose that tennis shirts for men and women are ordered jointly. Annual dem
ID: 2436383 • Letter: N
Question
Now suppose that tennis shirts for men and women are ordered jointly. Annual demand, joint order cost inventory-holding cost are summarized in Table3 Table 3: Ordering and inventory-holding cost Tennis shirts for men Tennis shirts for women Annual demand (units per year) oint order cost (S) Cost of product (S per unit) Inventory-holding cost (% of product cost) Dw = 3000 SMw 70 CM 40 Cw 60 hw-5096 (2) Calculate optimal order size (lot size), cycle inventory, order frequency, annual ordering cost, and annual inventory-holding cost. Enter the answers in the table below. Answers Tennis shirts for men Tennis shirts for womern Optimal order size (units per order) Cycle inventory (units) Order frequency (per year) Annual orderigcostper year) Annual inventory-holding cost (S per year)Explanation / Answer
Information given
Men
Women
Demand
2,000
3,000
Joint Order Cost
70
70
Cost of Product
40
60
Inventory Holding cost
50%
50%
Therefore Inventory holding cost
(Cost of product * Inventory holding %)
20
30
Formulae
Men
Women
Optimal Order Size (Units per order)
[EOQ=Root of- 2 *Joint order cost* Demand size/ Inventory carrying cost]
(Eg- Men= Root of- 2*70*2000/20
Women= Root of- 2*70*3000/30)
118
118
Cycle Inventory (Units)
[Total Demand/ Optimal order size]
[Eg- Men= 2000/118
Women= 3000/118]
17 orders
26 orders
Order Frequency (per year)
( Assumed 365 days-52 sundays=313)
[Total number of days/ Orders per year]
[Eg- Men= 313/17
Women=313/26]
18.4 days
12 days
Annual Ordering cost ($ per year)
[Cost per order*Demand/ Optimal size of order]
[Eg- Men- 70*2000/118
Women- 70*3000/118
1,187
1,780
Annual Inventory Holding cost
[Inventory holding cost*Optimal Order size/2]
[Eg: Men= 20*118/2
Women= 30*118/2]
1,180
1,770
Please note the answer is as per my knowledge and formuale as studied by me
Information given
Men
Women
Demand
2,000
3,000
Joint Order Cost
70
70
Cost of Product
40
60
Inventory Holding cost
50%
50%
Therefore Inventory holding cost
(Cost of product * Inventory holding %)
20
30
Formulae
Men
Women
Optimal Order Size (Units per order)
[EOQ=Root of- 2 *Joint order cost* Demand size/ Inventory carrying cost]
(Eg- Men= Root of- 2*70*2000/20
Women= Root of- 2*70*3000/30)
118
118
Cycle Inventory (Units)
[Total Demand/ Optimal order size]
[Eg- Men= 2000/118
Women= 3000/118]
17 orders
26 orders
Order Frequency (per year)
( Assumed 365 days-52 sundays=313)
[Total number of days/ Orders per year]
[Eg- Men= 313/17
Women=313/26]
18.4 days
12 days
Annual Ordering cost ($ per year)
[Cost per order*Demand/ Optimal size of order]
[Eg- Men- 70*2000/118
Women- 70*3000/118
1,187
1,780
Annual Inventory Holding cost
[Inventory holding cost*Optimal Order size/2]
[Eg: Men= 20*118/2
Women= 30*118/2]
1,180
1,770
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.