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Week 6: Economic Ordering Quantity
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The annual requirements for a particular raw material are 2,000 units costing Re. 1 each to the manufacturer. The ordering cost is Rs. 10 per order and the carrying cost 16% per annum of the average inventory value.
1. Based on the above
Find and explain the economic order quantity and the total inventory cost per annum.
The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.
2. Based on the above, explain the following
What is the time between the placing of orders?
The procurement lead time is one month.
What is the re-order point based on the on-hand inventory level?
See Template
Submission:
Complete and submit the template. Follow APA format for the written sections of the assignment. Include academic quality references to support your written work.
Due on Dec 12, 2024 11:59 PMAttachments
Assignment Week 6
Name
American Public University
BUSN 312
Professor
Date
The annual requirements for a particular raw material are 2,000 units costing Re. 1 each to the manufacturer. The ordering cost is Rs. 10 per order and the carrying cost 16% per annum of the average inventory value.
1. Based on the above
Find and explain the economic order quantity and the total inventory cost per annum.
Question 1 Answer:
EOQ
=
Total Inventory Cost per annum = Rs.
The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.
2. Based on the above, explain the following
What is the time between the placing of orders?
The procurement lead time is one month.
What is the re-order point based on the on-hand inventory level?
Question 2 Answer
EOQ =
Time between orders =
Re-order Point =
BUSN Essay Rubric (JAN 2023)
Course: BUSN312 I002 Fall 2024
Criteria Exemplary Accomplished Developing Beginning
Did Not
Attempt
Criterion
Score
ILO:
Applied
Learning
/ 202
0 points
Student
provided
strong
evidence
that they
completely
understood
the premises
of
the lesson
content
and
exhibits
expertise in
how to apply
the
concepts
effectively.
17 points
Student
understood
the majority
of
the
premises of
the lesson
content and
exhibits
knowledge
how to apply
the majority
of the
concepts
effectively.
Some minor
corrections
were
needed.
15 points
Student
understood
some of the
premises of
the lesson
content;
however
significant
portions
were not
thoroughly
understood
to the extent
needed
to
apply the
concepts.
13 points
Student did
not appear
to
understand
the majority
of the basic
premises of
the lesson
content and
most likely
could not
apply a
majority of
the concepts
effectively.
0 points
Student did
not submit
an
assignment
or gave
evidence
they did not
understand
the lesson
material and
could not
apply any of
the concepts
effectively.
Criteria Exemplary Accomplished Developing Beginning
Did Not
Attempt
Criterion
Score
Program
Objectives
/ 25
Course
Objectives
/ 25
25 points
Essay
thoroughly
and
correctly
addressed all
variables,
questions,
and/or
management
factors
posed in the
instructions
correctly.
21.25 points
Essay
thoroughly
and correctly
addressed
90%+ of the
variables,
questions, or
management
factors
posed in the
instructions
correctly,
however,
one or two
questions
were not
answered as
thoroughly
as needed.
18.75 points
Essay
thoroughly
and correctly
addressed
80% to 90%
of the
variables,
questions, or
management
factors
posed in the
instructions
Some
answers
were not as
thorough as
required or
were
inaccurate.
16.25 points
Student
thoroughly
and correctly
addressed
only 70% to
80% of the
variables,
questions, or
management
factors
posed in the
instructions
correctly
and/or some
answers
were not as
thorough as
needed.
0 points
Student did
not submit
an
assignment
or addressed
less than
70% of the
variables,
questions, or
management
factors
posed in the
instructions.
25 points
Student
provided
more than
three
examples
that
reflected an
understandin
g of the
premises and
objectives of
the lesson
material.
21.25 points
Student
provided 2-3
examples
that
reflected an
understandin
g of the
importance
of the
premises and
objectives of
the lesson
material.
18.75 points
Student
provided 1
example that
reflected an
understandin
g of the
importance
of the
premises and
objectives of
the lesson
material.
16.25 points
Student did
not provide
any
examples
that
reflected an
understandin
g of the
importance
of the
premises and
objectives of
the lesson
material.
0 points
Student did
not submit
the
assignment.
Total / 100
Overall Score
Criteria Exemplary Accomplished Developing Beginning
Did Not
Attempt
Criterion
Score
Narrative
clarity and
use of
correct
Grammar,
punctuatio
n, & word
choice
/ 20
Use of
APA
Format &
Style
/ 10
20 points
Writing is
consistently
clear
throughout
the essay
and
contained 0
– 2
different
grammar,
punctuation,
or word
choice
errors.
17 points
Writing is
generally
clear and/or
contained 3
– 4 different
grammar,
punctuation,
or word
choice
errors.
15 points
Writing is
less than
clear in
several
places
and/or
contains 5 –
6 different
grammar,
punctuation,
or word
choice
errors.
13 points
Writing is
unclear in a
significant
portion of
the essay
and/or
contains 7 –
8 different
grammar,
punctuation,
or word
choice
errors.
0 points
Paper
contains 9+
different
grammatical
errors OR
student did
not submit a
paper.
10 points
Paper
contains no
more than 2
APA errors,
including
formatting.
8.5 points
Paper
contains 3
different
APA errors,
including
formatting.
7.5 points
Paper
contains 4
different
APA errors,
include
formatting.
6.5 points
Paper
contains 5-6
different
APA errors,
including
formatting.
0 points
Student did
not submit
the
assignment
or had 6+
APA errors,
including
formatting
Exemplary
90 points
minimum
Accomplished
80 points
minimum
Developing
70 points
minimum
Beginning
60 points
minimum
Did Not
Attempt
0 points minimum
