Demand and holding costs, EOQ Show your work and the

Demand and holding costs

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Reference no: EM131126490

EOQ Show your work and the numbers used. You don't need to recreate the equations, but you need to clearly show the inputs (demand, holding costs, etc.) to the equations. Question 1. 1. The American Airlines Center wants to explore their inventory policy on purchasing of hot dogs and hot dog buns. They are currently using 1000 cases of buns and 200 cases of hot dogs per month and ordering 2000 cases of buns and 400 cases of hot dogs at a time. Buns Hot Dogs Order cost $10 $25 Holding cost per case $1 $0.25 Under their current ordering scheme, what is the total cost of each of the items? Using an EOQ model, what would their total costs for each item be? How much money does this save in total? (calculate savings for hot dogs and buns combined) Their supplier has offered an alternative deal of placing a monthly order of 1000 cases of buns and 200 cases of hot dogs. In exchange for the fixed monthly order, the supplier will change the order cost for the hot dogs and buns to a $5 each per item each month. Should they take the supplier up on this offer?

Reference no: EM131126490

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Demand and holding costs : EOQ Show your work and the numbers used. You don't need to recreate the equations, but you need to clearly show the inputs (demand, holding costs, etc.) to the equations. The American Airlines Center wants to explore their inventory policy on purchas..

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