Problem 1:

You have gathered the following information for a friend who manages a restaurant. You will use this data for an ABC analysis and use it in the first 3 questions in the HW Form:

Problem 2:

You typically order the ink cartridge replacements for your office at 100 units at a time. You estimate that the annual carrying cost per item is 34% of the $55 unit cost. (The cost to hold one item for one year = 34% of the $55.) Annual demand is 500 units. You estimate that the cost to place an order is $25. Since you learned about the EOQ model in class, you want to compare your plan to order 100 units at a time with an EOQ solution. Assume that there are 365 working days a year and that lead time is 14 days. Consider only the inventory costs and answer questions 4 to 9 in the HW Form.

Problem 3:

You supply 300,000 small button batteries per year to Light-My-Way, Inc., manufacturer of LED dog collars. The setup cost is $50 and the holding cost is $0.04 per year per battery. You can produce 1500 batteries per day. You ship 750 per day to Light-My-Way, Inc. Questions 10 to 12 in the HW Form use this information.

Problem 4:

You purchase key chains with your company logo to give to customers. You purchase 10,000 a year. You estimate the cost to hold at 30% of the purchase cost and the cost to place an order at $25 per order. Your vender gives you the following pricing information.