ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has two possible suppliers: Supplier A Shipping costs $1,000 Per-unit carrying costs $70 Supplier B Shipping costs $900 Per-unit carrying costs $81 What is the EOQ for each supplier? Round your answers to the nearest whole number. Supplier A: units Supplier B: units If the firm establishes a safety stock of 108 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number. Supplier A: units Supplier B: units What will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number. Units Minimum Maximum Supplier A: Supplier B: If delivery takes nine days, what should be the firm's level of inventory when it places an order with supplier A? Assume 365 days in a year. Round your answer to the nearest whole number. units
ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has two possible suppliers:
| Supplier A | Shipping costs $1,000 |
| Per-unit carrying costs $70 | |
| Supplier B | Shipping costs $900 |
| Per-unit carrying costs $81 |
-
What is the EOQ for each supplier? Round your answers to the nearest whole number.
Supplier A: units
Supplier B: units
-
If the firm establishes a safety stock of 108 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number.
Supplier A: units
Supplier B: units
-
What will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number.
Units Minimum Maximum Supplier A: Supplier B: -
If delivery takes nine days, what should be the firm's level of inventory when it places an order with supplier A? Assume 365 days in a year. Round your answer to the nearest whole number.
units
Step by step
Solved in 2 steps
