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11) When determining the Economic Order Quantity (EOQ) with quantity
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# Question : 11) When determining the Economic Order Quantity (EOQ) with quantity : 2066006

11) When determining the Economic Order Quantity (EOQ) with quantity discounts, which cost is included in addition to the costs considered in the basic EOQ formulation?

A) Cost of packing the item

B) Safety stock cost

C) Per-unit cost of the item

D) Inventory cycle count cost

Use the information below to answer the following questions:

The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs \$.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are \$100 per order, and that the lead time for delivery is four (4) days. Assume 365 days in a year.

12) At what point should resin be reordered?

A) 0 kilograms remaining

B) 50 kilograms remaining

C) 200 kilograms remaining

D) 400 kilograms remaining

13) What is the economic order quantity (EOQ) for resin?

A) 50 kilograms

B) 100 kilograms

C) 200 kilograms

D) 500 kilograms

14) What is the Total Cost (TC) at the EOQ?

A) \$3000

B) \$7300

C) \$9000

D) \$12700

15) What would be the length of an order cycle — i.e. the time between successive orders using the EOQ?

A) 10 days

B) 20 days

C) 25 days

D) 30 days

## Solution 5 (1 Ratings )

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Supply Chain Management 3 Years Ago 720 Views