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Make up Assignment Arun Thomas 2021-12-27 19 35 33
Introduction to supply chain and operations management (oper1420)
Conestoga College
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Make up Assignment
Student Name: Arun
OPER1160-SEC-22-Introduction to Supply Chain and Operations
Management
27 December 2021
Answers
Given details,
Average demand d= 445 packages per year (4450 units per year)
Ordering cost k= $
Holding cost= $25 per package
Lead time L= 7 weeks = 7x5 = 35 Days
Selling price (SP)= $
Cost per unit = 20$
Average inventory= 445 units
a) Annual demand d= 445 x 10 = 4450 units Cost of goods sold (COGS) = D x Cost per unit. = 4450 x $20 = 89, Current inventory turn = Cost of goods sold / Average inventory = 89000 / 445 = 200 b) (20% x 445) / 100 = 534 packages next year COGS = 534 x 10 = 5340 x 20 = 106, Next year inventory turn = 106800 / 534 = 200 c) Reorder package (R) = d x L + ss = 445 x 35 + 178 = 15753 units When the inventory level reaches 15753 units, an order will be placed. d) Holding cost = 25$ D = 445 Set up cost S = 150 (100 + 50) EOQ = SQRT (2 x D x S/H) = (2) (150) (445) / 25 = 73. = 73 units quantity they should reorder each time for the next year
Make up Assignment Arun Thomas 2021-12-27 19 35 33
Course: Introduction to supply chain and operations management (oper1420)
University: Conestoga College
