DSIOPMA ProblemSolvingNo.6CHUA
DSIOPMA ProblemSolvingNo.6CHUA
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛:
𝑎.
Annual dollar
Item Unit cost Annual volume % Sum of % Classification
volume
2𝐷𝑆 2𝐷𝑆 𝑝
𝑏. 𝐸𝑂𝑄 = 𝐻
𝑐. 𝐸𝑃𝑄 = 𝐻 (𝑝−𝑢)
(2×4500×36) (2×18000×100) 120
𝐸𝑂𝑄 = 𝐸𝑃𝑄 = 40 (120−90)
10
𝐸𝑂𝑄 = 180 𝐸𝑃𝑄 = 600
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛:
𝐴𝑛𝑛𝑢𝑎𝑙 𝑑𝑒𝑚𝑎𝑛𝑑 𝐷 = 1215 𝑏𝑎𝑔𝑠 𝑑. 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑐𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 + 𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡
𝑂𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 𝑆 = $10
𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 𝐻 = $75
=( )𝐻 + ( )𝑆
𝑄
𝑆
𝐷
𝑄
= ( )7 + ( ) × 10
18 1215
2 18
𝐸𝑂𝑄 = (2 × 1215 × )
10
75
𝑒. 𝐼𝑓 ℎ𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡𝑠 𝑤𝑒𝑟𝑒 𝑡𝑜 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑏𝑦 $9 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 𝐻 = 84
10
𝐸𝑂𝑄 = 18 𝐸𝑂𝑄 = 2 × 1215 × 84
= 17
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑐𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 + 𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡
𝐸𝑂𝑄
𝑏. 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑏𝑎𝑔𝑠 𝑜𝑛 ℎ𝑎𝑛𝑑 = 2 = ( )𝐻 + ( )𝑆
𝑄
2
𝐷
𝑄
= ( )84 + ( ) × 10
17 1215
18 2 17
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑏𝑎𝑔𝑠 𝑜𝑛 ℎ𝑎𝑛𝑑 = 2
=9
= 714 + 714. 706 = $1428. 706
𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑏𝑦 ($1428. 706 − $1350) = 78. 706
𝐷 1215
𝑐. 𝑂𝑟𝑑𝑒𝑟𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 = 𝐸𝑂𝑄
− 18
= 67. 5 = 68
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛:
𝑝 = 5, 000 ℎ𝑜𝑡𝑑𝑜𝑔𝑠/𝑑𝑎𝑦
𝑢 = 250 ℎ𝑜𝑡𝑑𝑜𝑔𝑠/𝑑𝑎𝑦
300 𝑑𝑎𝑦𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
𝐷 = 250/𝑑𝑎𝑦 × 300 𝑑𝑎𝑦𝑠/𝑦𝑟. = 75, 000
𝑆 = $66
𝐻 = $. 45/ℎ𝑜𝑡𝑑𝑜𝑔 𝑝𝑒𝑟 𝑦𝑟.
𝐷 75,000
𝑏. 𝑄0
= 4,812
= 15. 59, 𝑜𝑟 𝑎𝑏𝑜𝑢𝑡 16 𝑟𝑢𝑛𝑠/𝑦𝑟.
𝑄0 4,812
𝑐. 𝑟𝑢𝑛 𝑙𝑒𝑛𝑔𝑡ℎ: 𝑝
= 5,000
=. 96 𝑑𝑎𝑦𝑠, 𝑜𝑟 𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒𝑙𝑦 1 𝑑𝑎𝑦.
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛:
𝐴𝑠 2, 400 𝑏𝑜𝑥𝑒𝑠 𝑓𝑎𝑙𝑙 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑎𝑛𝑔𝑒 𝑜𝑓 2, 000 𝑡𝑜 4, 999 𝑏𝑜𝑥𝑒𝑠 𝑡ℎ𝑒 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑏𝑜𝑥 𝑤𝑜𝑢𝑙𝑑 𝑏𝑒 $1. 20.
𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑎𝑠 𝑠ℎ𝑜𝑤𝑛 𝑏𝑒𝑙𝑜𝑤:
𝑈𝑠𝑖𝑛𝑔 𝑎𝑛 𝑜𝑟𝑑𝑒𝑟 𝑠𝑖𝑧𝑒 𝑜𝑓 10, 000 𝑓𝑜𝑟 𝑎 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 $1. 10 𝑝𝑒𝑟 𝑏𝑜𝑥 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑎𝑠 𝑠ℎ𝑜𝑤𝑛 𝑏𝑒𝑙𝑜𝑤:
𝑈𝑠𝑖𝑛𝑔 𝑎𝑛 𝑜𝑟𝑑𝑒𝑟 𝑠𝑖𝑧𝑒 𝑜𝑓 5, 000 𝑓𝑜𝑟 𝑎 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 1. 15 𝑝𝑒𝑟 𝑏𝑜𝑥 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑎𝑠 𝑠ℎ𝑜𝑤𝑛 𝑏𝑒𝑙𝑜𝑤:
𝑇ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒, 𝑡ℎ𝑒 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑐𝑜𝑠𝑡 𝑖𝑠 𝑓𝑜𝑟 𝑜𝑟𝑑𝑒𝑟𝑖𝑛𝑔 5, 000 𝑏𝑜𝑥𝑒𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟.
𝐻𝑒𝑛𝑐𝑒, 𝑡ℎ𝑒 𝑜𝑝𝑡𝑖𝑚𝑎𝑙 𝑜𝑟𝑑𝑒𝑟 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑖𝑠 5, 000 𝑏𝑜𝑥𝑒𝑠.
𝑅𝑒𝑜𝑟𝑑𝑒𝑟 𝑝𝑜𝑖𝑛𝑡
= 𝐷𝑒𝑚𝑎𝑛𝑑 𝑑𝑢𝑟𝑖𝑛𝑔 𝑙𝑒𝑎𝑑 𝑡𝑖𝑚𝑒 + 𝑍. × 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝑑𝑢𝑟𝑖𝑛𝑔 𝑙𝑒𝑎𝑑 𝑡𝑖𝑚𝑒
= 300 + 2. 33 × 30
= 300 + 69. 9
= 369. 9(370 𝑟𝑜𝑢𝑛𝑑𝑒𝑑 𝑡𝑜 𝑛𝑒𝑎𝑟𝑒𝑠𝑡 𝑖𝑛𝑡𝑒𝑔𝑒𝑟)
𝑅𝐸𝑄𝑈𝐼𝑅𝐸𝐷 𝑅𝑂𝑃 𝑇𝐻𝐴𝑇 𝑊𝐼𝐿𝐿 𝑃𝑅𝑂𝑉𝐼𝐷𝐸 𝐴 𝑅𝐼𝑆𝐾 𝑂𝐹 𝑆𝑇𝑂𝐶𝐾𝑂𝑈𝑇 𝑂𝐹 1 𝑃𝐸𝑅𝐶𝐸𝑁𝑇 𝐷𝑈𝑅𝐼𝑁𝐺 𝐿𝐸𝐴𝐷 𝑇𝐼𝑀𝐸 = 370
𝑆𝐴𝐹𝐸𝑇𝑌 𝑆𝑇𝑂𝐶𝐾 𝑁𝐸𝐸𝐷𝐸𝐷 𝑇𝑂 𝐴𝑇𝑇𝐴𝐼𝑁 𝐴 1 𝑃𝐸𝑅𝐶𝐸𝑁𝑇 𝑅𝐼𝑆𝐾 𝑂𝐹 𝐴 𝑆𝑇𝑂𝐶𝐾𝑂𝑈𝑇 𝐷𝑈𝑅𝐼𝑁𝐺 𝐿𝐸𝐴𝐷 𝑇𝐼𝑀𝐸 = 70