Babble, Inc., buys 375 blank cassette tapes per month for use in producing foreign language courseware....

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Babble, Inc., buys 375 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is

business Operations-Management

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Answer 1

Answer #1

DEMAND = 4500
ORDERING COST = 15
HOLDING COST = 0.25

WORKING = 12 MONTHS

1. EOQ = SQRT(2 * D * S / H), WHERE D = DEMAND, S = ORDERING COST AND H = HOLDING COST = SQRT(2 * 4500 * 15 / 0.25) = 735

2. TIME BETWEEN ORDERS = EOQ / DAILY DEMAND = 735 / (4500 / 12) = 1.96 OR 2.0

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Answer 2

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Babble, Inc., buys 400 blank cassette tapes per month for use in producing foreign language courseware....

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