GROUP 1

Student Code Student name In-charge Check the answer

2013316676 Đỗ Lê Duy Question 5

2013316684 Nguyễn Thị Hồng Hà Question 1

2013316708 Nguyễn Quốc Khánh Question 3 ALL

2013316716 Trần Thị Huệ Linh Question 5

2013316731 Huỳnh Kim Ngân Question 2

2013316737 Nguyễn Tống Nguyên Question 6

2013316746 Trần Ngọc Phương Nhi Question 2

2013316815 Nguyễn Duy Thuận Tú Question 4

Answer 1:
EOQ = sqrt(2xCoxD/Ch) = sqrt(2x60x2000/1)= 490(kegs/order)

Answer 2:
Total inventory cost = Q x Ch x D/Q x Co

Quantity 0 to 248 249 to 749 750 and above

Order processing cost 60 30 0

(Co)

Quantity Order For Co=60 and the EOQ*=Sqrt[(2000x30) At the level of 750
(Q*) rest of the /(40x0,025)] = 245 quantities or more,
parameters the Because it is out of he can get the
same as in part 1, range -> take the benefit of 0
we get EOQ=346 minimum is 249 processing cost.
which isn't in this However, as quantity
range. As a result, increase, the holding
the max number of cost will also
Low can order is increase so he
248 should take

Q*=248 Q*=750

Total cost T= 248*1 T=249*1+(2000/ T= 750*1 +0

 +(2000/248)*60 249)*30 = 489.96 = 750
= 731.87

New Low’s EOQ EOQ=249

Answer 3:
● Total stock cost = Q/2 * Ch + D/Q * Co => The answer will change; a change in
warehouse policy will change the holding cost
● New EOQ = sqrt((2*Co*D)/Ch) = sqrt((2*60*2000)/1) = 489,8979 (Units)

Answer 4:

Quantities 0 to 248 249 to 749 750 and above

Ordering 60 30 0
cost

Quantity Because the EOQ=sqrt(2*30* as he can gain the max benefit when
order ordering cost will 2000)/(40*0,025) his order is equal to 750. In this
remained = 346 case, the order cost is lowest and so
unchange in the does the holding cost. Low had to
range of 0 to 248 rent a constant amount of
--> the manager warehouse space for the year, and it
will try to had to be large enough to
maximize the accommodate an entire order when
amount of stock in it arrived. Therefore, as the
this case to reduce increasing in the stock, the holding
the ordering cost cost will rise --> EOQ=750
per unit --> EOQ=
248

Answer 5:

This is a disadvantage for Low since he must pay the stock holding cost for the maximum
amount of space he can use. The average benefit he received in question 3 is no longer valid.
In addition, he must pay interest on unsold inventory, thus Q/2 is merchandise that has not
been sold. Low must pay interest on the average stock value he holds, in addition to the
aggregate stock cost we described earlier.

Interest Cost = Q/2* l*interest

Therefore: Total inventory cost = Q*Ch + D/Q*Co + Q/2* l* interest
Cost of per unit = 40
Interest = 1.5% /month
Therefore, interest per year = 1.5*12=18% per year
EOQ=sqrt((2*D*Co)/(2*Ch+I*interest))
EOQ=161.5

Answer 6:
In this situation, Low is obligated to pay interest on the shares he purchased in question 5.
Furthermore, like in question 2, he is receiving an offer from a supplier, thus we are utilizing
the same table. In addition, he is being charged in the warehouse based on average stock
rather than full maximum capacity. As a result of the preceding examples, we arrive to the
following conclusion:
𝑄 𝐷 𝑄
Total inventory cost =
2
× 𝐶ℎ + 𝑄
× 𝐶𝑜 + 2
× 𝐼 × 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
2×𝐷×𝐶𝑜
EOQ=
𝐶ℎ×𝐼×𝑖
And,
D = 2000 units
Co = $ 60 {without discount}
Ch = $1 per unit / per year
i = 18% per year
Cost per unit, I = $40
i) B = $60 EOQ = 171
ii) B = $30 EOQ = 121
Quantities => 0 to 248 249 to 749 750 and above

Co (Order 60 30 0
processing cost)

Quantity Order Q* As in part 1 for Finding New EOQ As he can get the
Co=$60 and rest with half the order max benefit of 0
paramêtrr same we processing cost, processing cost at
get EOQ = 171 using same formula 750 quantity and
as in part a, we get holding cost will
EOQ*=121 increase as quantity
As it out the range, increase so taking
we take EOQ= 249 Q=750

Total inventory cost T= T=(249/2)*1+(2000/ T=(750/2)*1+(750/2

(using formula (171/2)*1+(2000/17 249)*30+(249/2)*40 )840*0.18=$3075
mentioned just 1)*60 + *0.18=$1262
above this table) (171/2)*40*0.18=$1
403

New Low’s EOQ EOQ=249

Low’s new EOQ = 249