## Business Logistics Homework 2 Problems

1)A company decides to establish an EOQ for an item. The annual sales volume (demand) is 200,000 units, each costing \$8, ordering costs are \$16 per order, and
inventory carrying costs are 20%. Calculate the following:a) The EOQ in units                                                                                                                                     b) Number of
orders per year                                                                                                                           c) Cost of ordering, cost of
carrying inventory, and total cost. 2)Given the following information with demand and performance cycle certainty:Average daily demand = 30 unitsPerformance cycle = 10 days
Order quantity (from (EOQ) = 300 units                                                                                                Review period = 1
week (5 working days)Calculate:                                                                                                                                                    a) the
reorder point utilizing the perpetual review method                                                                b) the reorder point utilizing the periodic review
method
3) Consider the following network structure: Assume that it is appropriate to keep 100 inventory units at the plant warehouse. Show ALL work to determine:
a) the common days supply.
b) the amount allocated to each warehouse using the Fair Share Allocation method.
4) Analyze the following data to produce an ABC classification based on annual sales:Product ID Annual Sales in (000s) % Total Sales Accumulated Sales (%) Products (%) Classification Category1   1,000 2   9,000 3 70,000 4 3,250 5 500 6 1,500 7 50,000 8    750 9 6,000 10 8,000 Determine: a) total annual product sales                                                                                                                         b)
complete calculations for each column                                                                                                     c) rank product ID in order
based on high-volume to low-volume (sales) products                                    d) develop ABC classificationShow all work.