Week 1 July 2025 Assignment

  • James

    Member
    July 4, 2025 at 10:00 am
  • James

    Member
    July 4, 2025 at 10:42 am

    Answers

    1.

    Assumptions of EOQ.

    (1) There is no lead time
    (2) There is no quantity discount
    (3) The rate of demand is known
    (4) There will be no opening and closing stock
    (5) The holding and ordering cost are controllable

  • EVERLYN

    Member
    July 5, 2025 at 8:43 am
  • Cpa Omondi Clinton

    Organizer
    July 6, 2025 at 6:20 pm

    Assumptions of EOQ

    i)

    ii)

    iii)

  • CPABeatrice

    Member
    July 6, 2025 at 6:22 pm
  • ERICK

    Member
    July 6, 2025 at 6:31 pm
  • [email protected]

    Member
    July 7, 2025 at 4:27 pm
  • RWani

    Member
    July 8, 2025 at 4:37 pm

    1) Assumptions of EOQ:

    – Constant unit price i.e., there is no quantity discounts.

    – There is no stockout or back ordering

    – Single product is being purchased

    – At equilibrium point ordering costs are constant and known

    – At equilibrium point demand is constant and known

    – At equilibrium point holding costs are constant and known

    1 (a) Explain 3 reasons why firms hold inventory:

    – To ensure products are available when customers need them. This avoids stockouts and/or lost sales.

    – To Manage supply chain uncertainty: holding inventory cushions against delays in supply, production issues, or transportation disruptions.

    Buying purchases reduces unit costs by taking advantage of quantity discount thus firms hold inventory to capitalize on quantity discounts.

    1 (b)

  • Cpa Omondi Clinton

    Organizer
    July 10, 2025 at 1:14 am
  • CPABeatrice

    Member
    July 11, 2025 at 10:38 am

    Holding cost of G why use 280 instead of 2800

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