Application Assignment 4

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Q Instructions Complete following problems: • 6-20 on page 227. • 6-26 on page 228. • 6-30 on page 228.

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Application Assignment 4 6-20 Annual demand = 100,000 $10 every time an order is placed Cost of carrying one screw in inventory for a year is 0.5 cents Demand is constant throughout the year a) How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? EOQ = sqrt(2*100,000*10/(0.5/100)) = 20,000

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