Step 1: Use the values below to calculate the EOQ, Order Cost, Holding Cost, and Total Cost (hint: your quantity to calculate the costs should be the EQQ):

Product A

Product B

Product C

Product D

Product E

D

75000

10000

20000

45000

100000

V

$20

$50

$8000

$4

$62.50

O

$30

$80

$300

$40

$200

C

22.5%

20%

15%

22.5%

25%


Safety stock assignment

Product A Product B Product C Product D Product E
Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time
96 3 107 4 164 7 168 8 217 11
98 94 156 200 190
103 98 161 194 184
97 100 155 177 196
104 95 152 172 185
96 3 106 4 155 7 195 8 208 11
103 102 153 193 196
103 104 150 191 199
103 95 151 182 219
103 90 158 181 204
99 3 107 4 159 7 161 10 215 11
103 103 154 189 182
100 90 159 171 212
105 104 155 174 196
96 103 154 163 181
97 2 103 4 162 8 195 9 200 13
103 92 158 190 210
100 94 164 178 213
102 108 158 198 209
100 104 154 166 208
97 2 100 5 162 6 187 8 191 10
99 94 159 166 216
95 93 152 186 199
99 106 163 167 188
102 102 150 172 183
105 2 102 4 153 6 182 10 219 13
100 94 154 176 217
96 93 153 169 205
101 93 152 166 219
98 97 150 187 202

Step 3: Use the values above (from the Safety Stock Assignment) to calculate lead-time-demand:

Step 4: Once you have made all those calculations, save your answers in a convenient place and you have all the answers to the quiz questions.



For Product A, what is the Total Cost (of holding and ordering inventory)? (please enter it in the following format xxx, xxxx, or xxxXx)

Question 2 /
For Product B, what is the EOQ? (please enter it in the following format xxx, xxxx, or xxxxx)

Question 3 /
For product C, what is the Total Cost (of holding and ordering inventory)? (please enter it in the following format xxx, xxxx, or xxxxx)

Question 4 /
For product D, what is the EOQ? (please enter it in the following format xxx, xxxx, or xxxxx)

For product E, what is the EOQ? (please enter it in the following format xxx, xxxx, or xxxxx)

Question 6 /
For Product A, what is the safety stock you would hold if you wanted to reach a 99% fill rate? (rounded to the nearest integer, e.g. xx.Xx-->xx)

Question 7 /
For Product B, what is the safety stock you would hold if you wanted to reach a 97.5% fill rate? (rounded to the nearest integer, e.g. xx.xx-->xx)

Question 8 /
For Product C, what is the combined standard deviation of lead time and demand? (rounded to the nearest integer, e.g. xx.xX-->xx)

Question 9 /
For Product D, what is the safety stock you would hold if you wanted to reach a 95% fill rate? (rounded to the nearest integer, e.g. xx.xx-->xx)

Question 10 /
For Product E, what is the combined standard deviation of lead time and demand? (rounded to the nearest integer, e.g. xx.XX-->xx)

Question 11 /
For Product A, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.xx-->xx)

Question 12 /
For Product B, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.xx-->xx)

Question 13/
For Product C, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.XX-->Xx)

Question 14 /
For Product D, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.XX--> Xx)

Question 15 /
For Product E, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.xx--> Xx)