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assembly plant uses an average of 4000 engines a year. Preparing an order and receiving a shipment of engines involves a cost of $100 per order. Annual carrying costs are $750 per engine. a. Determine the economic order quantity. b. What is the average number of engines on hand? c. How many orders per year will be there? d. Compute total cost of ordering and carrying engines.

assembly plant uses an average of 4000 engines a year. Preparing an order and receiving a shipment of engines involves a cost of $100 per order. Annual carrying costs are $750 per engine. a. Determine the economic order quantity. b. What is the average number of engines on hand? c. How many orders per year will be there? d. Compute total cost of ordering and carrying engines.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An assembly plant uses an average of 4000 engines a year. Preparing an order and receiving a shipment of engines involves a cost of $100 per order. Annual carrying costs are $750 per engine.

a. Determine the economic order quantity.

b. What is the average number of engines on hand?

c. How many orders per year will be there?

d. Compute total cost of ordering and carrying engines.

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