Question 1: Amazon has an SKU costing $10 and is normally ordered in quantities of 800 units. The annual demand is 6,000 units, carrying cost is 20%, and the cost of placing an order is $100. Calculate the following for order quantities of 800 and 1,500 units.
A. Average inventory
B. # of orders placed per year
C. Annual inventory carrying cost
D. Annual ordering cost
E. Total Annual cost
Question 2: Benny, the owner of Benny's warehouse, decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $8, ordering costs are $32 per order, and inventory-carrying costs are 20%. Calculate the following.
Show your calculations and formula in white space below. Record your answers in the table.
A. The EOQ in units
B. # of orders placed per year
C. Annual inventory carrying cost
D. Annual ordering cost
E. Total Annual cost
Question 3: View the video, discover the features and capabilities then briefly summarizes what the software does and how it helps the company.
Question 4: Case Study - Selecting a location using the factor-rating method.
Based on your calculations, the optimal site is: (show all work).
Now, If all things stayed the same except - you changed the weight of Transportation availability from 15% to 5% and Facilities cost from 15% to 25%. What are the new weighted scores?
Based on your new calculations, what is the optimal site: (show all work).
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