Economic Order Quantity and Optimal Order Size free essay sample

Question 1 The Metropolitan Book Company buys papers from the Atlantic Paper Company. Metropolitan produces magazines and soft cover books that require 1,215,000 pounds of paper for each year. The expense per request for the organization is $1200; the expense of holding 1 pound of paper in stock is $0.08 every year. Decide the accompanying: a) The monetary request amount b) The base all out yearly expense c) The ideal number of requests every year d) The ideal time between orders Question 2 The buying chief for the Atlantic Steel Company must decide an approach for requesting coal to work 12 converters. Every converter requires precisely 5 tons of coal for each day to work, and the firm works 360 days of the year. The buying supervisor has established that the requesting cost is $80 per request and the expense of holding coal is 20% of the normal dollar estimation of stock held. The buying chief has arranged an agreement to acquire the coal for $12 per ton for the coming year. We will compose a custom article test on Financial Order Quantity and Optimal Order Size or on the other hand any comparative subject explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page a) Determine the ideal amount of coal to get in each request. b) Determine the all out stock related expenses related with the ideal requesting approach (do exclude the expense of the coal). c) If 5 days of lead time are required to get a request for coal, what amount of coal ought to be close by when a request is put? Question 3 The Pacific Lumber Company and Mill process 10,000 logs every year, working 250 days out of every year. Quickly after getting a request, the logging company’s provider starts conveyance to the timber plant, at a pace of 60 logs for every day. The wood factory has establish that the requesting cost is $1,600 per request and the expense of conveying signs in stock before they are forms is $15 per sign on a yearly premise. Decide the accompanying: a) The ideal request size b) The absolute stock expense related with the ideal request amount. c) The quantity of working days between orders d) The quantity of working days required to get a request.