Problem 12.2 – Boreki Enterprise
MyOMLab Operations Management
Heizer, Render and Munson
13th Edition
Classify the inventory items at Boreki Enterprise into ABC classifications.
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Classify the inventory items at Boreki Enterprise into ABC classifications.
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Determine the optimal stocking level for Enrique Correa’s bakery to maximize profit.
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Sells cakes and day-old cakes and asks for optimum stocking level.
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Calculate the cost of underestimating, overage cost per program, the ideal number of programs to order per game, and stockout risk.
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Solves any basic EOQ (Economic Order Quantity) problem. WARNING! Make sure that both DEMAND and the HOLDING COST are both expressed as ANNUAL. If one of them is not annual, convert to an annual value for the solver input. Note: the letter S = order cost. The cost-minimizing quantity is the “number to order each time”. Also provides average inventory and number of orders each year.
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