1. Economic Order Quantity (EOQ) is a formula that is still used in procurement algorithms. EOQ can be mathematically calculated to present the result in the dollar value of the order or number of units to purchase. For this assignment, use the concepts in chapter 9 and calculate the economic order quantity in units using the following data:
Solve for number of units
EOQ = The most economic order in units
R – Annual demand in units = 200
A- Administrative cost per order = $25 per order
V- Dollar value of inventory = $5 per unit
W- Carrying cost of inventory (expressed in annual percentage of inventory’s dollar value) = 20%
2. Using the following data, solve for reorder point ROP and ROP plus safety stock .
DD – Average daily demand = 80
RC – Replenishment Cycle = 5 days
SS – Safety stock = 40 units
A: When the inventory reaches how many units, do you place another order?
B: How many units do you order including safety stock
Use in-text citations to distinguish between your own analysis and ideas taken from your reading. Keep in mind that work without support from research is really just an opinion. Your argument always carries more weight when supported by an expert source. Try to use words like "according to . . . (cite source)", rather than using "I think . . .".
2. Based on concepts from Chapters 10 & 11 of the Coyle et al. (2017) text, select a distribution company that you are familiar with and assess the distribution management strategy they use. Your assessment can be positive or negative,
Remember, opinions/personal experience are not appropriate here, only details supported by research. Use citations and references to identify your sources.
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