Identifying economic order quantity


Assignment:

Q1. Some suggest that inventory management is the “heart and soul” of operations management. Maintaining optimal supply of inventory is always fun and a challenge.  For this discussion, let's analyze how you manage the groceries you buy, hence, your food supply. Discuss the strategies that shape your decisions when shopping for groceries:

• How do you purchase for an upcoming party, gatherings, etc. that you will be hosting will be hosting?
• Do you visit the grocery store on a periodic basis or when they run out of something? When you go, do they try to stock up on all regular items in the same trip?

In addressing this question(s) be sure to provide  references and citations to support your work and added credibility.

Q2. AbeyKuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $24.

a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100.

b) Identify the economic order quantity and consider the impli- cations for making an error in calculating economic order quantity.

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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