A product has a demand of 10,000 units per year. Ordering cost is RO 200, and holding cost is RO 3 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost inventory (holding and setup) costs. Round-up to the nearest integer per year in total annual Select one: a. RO 800 b. RO1200 c. Zero; this is a class C item. d. RO 3465

A product has a demand of 10,000 units per year. Ordering cost is RO 200, and holding cost is RO 3 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost inventory (holding and setup) costs. Round-up to the nearest integer per year in total annual Select one: a. RO 800 b. RO1200 c. Zero; this is a class C item. d. RO 3465

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Description: A product has a demand of 10,000 units per year. Ordering cost is RO 200, and holding cost is RO 3 per unit per year.The EOQ model is appropriate. The cost-minimizing solution for this product will cost.inventory (holding and setup) costs. Round-up

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 22P

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The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj, the amount of item j to order. The model is:…
The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj, the amount of item j to order. The model is: (view…
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