Instructions
For this assignment the context is the ETPI case from M4. You will calculate the EOQ and reorder point for each of the book types. Lead time for any type of book is 5 weeks.
Assume the demand data given in the spreadsheet Module 5 EOQ Data.xlsxDownload Module 5 EOQ Data.xlsx is normally distributed. The accounting department estimates the average costs for A, B, and C books to be $5.05, $7.39, and $10.25, respectively, for a single copy. It costs 45% per year, per unit, for annual holding costs. The batch size is 3,500 for an A book, 1,000 for a B book, and 500 for a C book. The administrative cost for ordering a batch of a book has been estimated to be $125.
Prompts
What is your recommendation for each type of book? Why? How much safety stock should be held, by type of book? What is the total cost of your recommendation? What are the advantages and disadvantages of each option?
Module 5 EOQ Data.xlsxDownload Module 5 EOQ Data.xlsx
Requirements
In order to successfully complete this assignment, you must:
Make few or no grammatical, spelling, or syntactical errors.
Show any or all of the following:
Critical thinking
Original thinking
Researched examples
Critical/original thinking: Demonstrate new approaches and/or ability to “push back” rather than simply reproducing another’s thoughts
Use direct quotations sparingly and judiciously
Properly identify any sources and integrate into own thoughts and ideas
Provide a straightforward, easy-to-follow arrangement with appropriate formatting:
Comply with APA format
Answers clearly marked and named within assignment file(s)
Create an Excel document and name it using the following convention: “YourName-M5-assignment”
On the Excel document, answer the prompts listed above in about 1-2 pages of text, plus charts and tables
Upload the document to this page by clicking the “Submit Assignment” button
