Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
Answer:
To solve this problem, we need to use the Economic Order Quantity (EOQ) formula and the Modified EOQ formula.
First, let's calculate the total demand for the product:
Total demand = 1,000 units/3 months = 333.33 units/month
Next, we need to calculate the average usage rate:
Average usage rate = (40 + 45 + 55 + 60 + 50)/5 = 50 units/month
Now, we can calculate the EOQ using the formula:
EOQ = √(2 × 333.33 × 20)/(0.16 × 50)
= √(13,333.33)/(8)
= √1,666.67
= 40.82 units
Since the supplier delivery pattern and usage rate pattern are not constant, we need to calculate the Modified EOQ. We can do this by calculating the total cost for each possible EOQ value (40, 80, 100, 110, and 120 units) and selecting the one with the lowest total cost.
After calculating the total cost for each possible EOQ value, we find that the Modified EOQ is 80 units.
Now, let's calculate the incremental cost:
Incremental cost = Total cost (Modified EOQ) - Total cost (EOQ)
= Total cost (80) - Total cost (40.82)
= [2 × 333.33 × 20 + 0.16 × 50 × (80)^2] - [2 × 333.33 × 20 + 0.16 × 50 × (40.82)^2]
= 1,333.33 + 512 - 1,333.33 - 266.24
= 245.76
Therefore, the EOQ is 40.82 units, the Modified EOQ is 80 units, and the incremental cost is 245.76.
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.
