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 every 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 financial request amount b) The base absolute yearly expense c) The ideal number of requests every year d) The ideal time between orders Question 2 The buying administrator for the Atlantic Steel Company must decide an arrangement for requesting coal to work 12 converters. Every converter requires precisely 5 tons of coal for every day to work, and the firm works 360 days out of each year. The buying supervisor has confirmed 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 supervisor has arranged an agreement to get the coal for $12 per ton for the coming year. We will compose a custom paper test on Financial Order Quantity and Optimal Order Size or on the other hand any comparable 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 absolute stock related expenses related with the ideal requesting strategy (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 available when a request is set? Question 3 The Pacific Lumber Company and Mill process 10,000 logs every year, working 250 days out of each year. Promptly after accepting a request, the logging company’s provider starts conveyance to the wood factory, at a pace of 60 logs for every day. The timber plant has confirm 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 all out 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.