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Part 1:
A company is using the Economic Order Quantity (EOQ) model to manage its inventories. Suppose its inventory holding cost per unit per year doubles while the annual demand and the ordering cost per order do not change. What will happen to the EOQ?
Part 2:
A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. (Note: The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.
Tahiti Manufacturing recently purchased a new machine. The maintenance contractor recommended that this model should receive maintenance every 3,000 - 6,000 hours of operation. If
Consider the cutting stock problem that arises when a company manufactures sheets of standard width 100 and has commitments to supply 40 sections of width 40, 60 sections of width
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A fleet repair facility has the capacity to repair 900 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more tha
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