OPER 1160 OLC Final Exam Calcuation Practice - Answer Key (3)
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School
Western University**We aren't endorsed by this school
Course
BUSINESS 200396
Subject
Industrial Engineering
Date
Dec 16, 2024
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2
Uploaded by ambeevm
OPER 1160 OLC Final Exam Calculation Practice Questions Answer Key 1.a. 2DS/H= 2(10000)(25)12.50 = 200 workbooksb. (Q/2) *H= 200/2*12.50= $1250c. (D/Q) *S= 10500/200*25= $1250d.EOQ is the optimal order quantity where both the holding costs and the inventory ordering costs are minimized. It is also the point where holding costs = ordering costs. That is why the two costs equal each other.2.a. EOQ = 2DS/H= 2(400)(40)/5 = 80b. EOQ should go down because it costs us more money to hold inventory. Remember the graph ( not to scale from question)Carry cost increase2000Carrying CostCost1Order Cost1 1000QEOQ = 2DS/H= 2(400)(40)/6 =73c.EOQ should also go down as it costs less to place an order.EOQ = 2DS/H= 2(400)(30)/5 = 693.ROP= dl + SS = (50000/50 weeks= 100 per week for demand ) =(100*3)+200 =5004.ROP = dl= (10000/365 days/yr)*5 = 137 (no safety stock given so assume SS = 0)5.a.Q= R - I= 40-5 =35b.Q= R – I = 40-25 = 156.Inventory Turns = Sales /Average Inventory= $500000/ 40000= 12.5 times
7.Inventory Turns = Sales /Average Inventory= $100000/ 5000= 20 times8.Q= R - I = 20-5= 15 bags of salt and vinegar chips need to be restocked.9Therefore based on the supplier evaluation, Rickert shouldcontinue making slippers. 10.Billed incorrectly – 500Shipped late - 250Incorrect units – 1,200Damaged – 700Total Errors 2,650Percentage of perfect orders= [(15,000 – 2,650) / (15,000)] x 100 %= 82.3 %DimensionRickertOleQuality of parts and service 5 * 0.3 = 1.54 * 0.3 = 1.2On-time Delivery 5* 0.3 = 1.54 * 0.3 = 1.2Cost 3 * 0.3 = .95 * 0.3 = 1.5Management stability 5 *0 .1 = .53 * 0.1 = .3Total4.44.2