Question

OS DATL Text Direction AAA, DJ Align Text Aa - A Po convertito SmartArt 13 Paragraph 112 11 10 9 8 HIGHSTEHEN Shape Fill Find Shape Outline bac Replace Arrange Quick Shape Effects Select Styles Drawing Editing 24:15 6.1.7.18 1 -10 111 112 1 0 1.9 Question 7 Consider a POQ model as follow: Set-up cost: $20 per set up Holding cost: $0.02 per unit per day Annual Demand: 25,550 units Production rate: 90 units per day Determine the production order quantity, and the length (in days) of each inventory cycle. (1 year = 365 days) 2DS Formula: 2; VH[1-(d/p)]

Answer 1

Production Order Quantity (POQ) = Rp 2 DS ✓ HP1-(d/p) 0.02 X 365 - D = Annual Demand 25,550 units S Setup Costa $20 per set up W = Annual Holding cost d = Demand per day 25,55o day 365 po Production per day 20 units per day $7.3 peru wit per year Yo units per da Qp 2x 25,550X 20 V 9-311- (10/90)) 1022000 1.622 N = 630000 11 1993. Yas 794 units ze

length (in days) of each inventory cycle Qui d = 793.725 yo - 11.34 days!