the Doll two-drawer filing cabinet:Inventory problem
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12-19 Annual demand for the Doll two-drawer filing cabinet is 50,000 units. Bill Doll, president of Doll Office Suppliers, controls one of the largest office supply stores in Nevada. He estimates that the ordering cost is $10 per order. The carrying cost is $4 per unit per
year. It takes 25 days between the time that Bill places an order for the two-drawer filing cabinets and the time when they are received at his warehouse. During this time, the daily demand is estimated to be 250 units.
(a) Compute the EOQ, ROP, and optimal number of orders per year.
(b) Bill Doll now believes that the carrying cost may be as high as $16 per unit per year. Furthermore, Bill estimates that the lead time may be 35 days instead of 25 days. Redo part (a), using these revised estimates.
Excel addin is attached
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This posting contains solution to following Inventory management problem for the Doll two-drawer filing cabinet.
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(b)
Inventory EOQ Model
Input Data
Demand rate, D 50000
Ordering cost, ...
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