Answer Happy

Question 4: (10 points) Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks. a. What is the EOQ? (3 points) b. Chapter 10: Inventory Models C. d. What is the reorder point? (2 points) What is the cycle time? (2 points) What is the total annual cost? (3 points)
Question 5: (10 points) Grizzly LLC produces its multimedia notebook computer on a production line that has an annual capacity of 16,000 units. EL Computer estimates the annual demand for this model at 6000 units. The cost to set up the production line is $2345, and the annual holding cost is $20 per unit. Current practice calls for production runs of 500 notebook computers each month. a. b. C. d. What is the optimal production lot size? (3 points) How many production runs should be made each year? (2 points) What is the recommended cycle time? (2 points) What is the total annual cost? (3 points)