QM3345

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The number of A category items = 7,000 * 10% = 700 items

Since A category items are to be counted every 20 working days,


the number of A category items to be counted per day is 700 : 20 = 35 per day.

The number of B category items = 7,000 * 35% = 2,450 items


Since B category items are to be counted every 60 working days,
the numbere of B category items to be counted per day is 2,450 : 60 = 40.83 = 41 per days.

The number of C category items 7,000 * 55% = 3,850 items


Since C category itmes are to be counted every 120 working days,
the number of C category items to be counted per day is 3,850 : 120 = 32 per day.

Summerizing

Item class Number of items counted per day


A 35
B 41
C 32
Total 108
tal number of items to be counted every day is 108 items.
Item number Unite cost Demand(units) Dollar volume Percentage
E102 4 800 3200
D23 8 1200 9600 27%
D27 3 700 2100 6%
R02 2 1000 2000 6%
R19 8 200 1600 4%
S107 6 500 3000 8%
S123 1 1200 1200 3%
U11 7 800 5600 16%
U23 1 1500 1500 4%
V75 4 1500 6000 17%
35800
Cumulative percentage
4
Given:
D= 8000 month
S= 45 order
H= 2 unit per month

Ans:
a) Therefore the Optimal units oer order (Q*)= 600

b) If H double
Therefore the Optimal unites per order (Q*)= 424.264069

c) If H drops in half
Therefore the Optimal units per order (Q*)= 848.528137
Given
The yearly demand of connectors (D)= 15000 units
The cost to place and process an order (S)= 75 $
Annual holding cost (H)= 25 $/unit
The company operaqtes (Q)= 300 days/year
The lead time to receive an order = 2 working days

Ans:
a) The economic order quantity = 300
b) The annual holding costs= 3750
c) The annual ordering costs = 3750
d) The reorder point = 100

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