question archive XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles

XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles

Subject:Operations ManagementPrice:2.86 Bought3

XYZ Company imports pp-resin in bags from Thailand to manufacture plastic bottles. The annual usage rate of the resin is 9000 bags. The cost of placing and receiving an order is Tk24000. The estimated monthly carrying cost is Tk100 per bag. economic order quantity, EOQ= 2078

 Find the number of orders per year and average inventory

 

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Number of orders per year= 4.331 orders

Average inventory= 1039 units

Step-by-step explanation

Number of orders per year=Demand/EOQ

=9,000/2078

=4.331 orders

 

Average inventory=EOQ/2

=2078/2

=1039 units