Question

Suppose you are working as an inventory manager with Walmart. You are assigned with the task
to determine EOQ for a batch of order containing three different items. The respective annual
demand for these itemsis 1000, 2000, and 3000 units respectively. The cost of item 1,2, and 3 are
50, 100, and 80, respectively Order cost for each item is also differentie 150 for Item 1, 140 for
Item 2, and 130 for Item 3. The maximum arrı ount that can be used for purchasing the goods are
$25,000 (Note that it includes the total cost of cach item multiplied by their respective EOQ
amount) and inventory holding cost for the company is 0 10 per unit Avoiding the basic
assumption of EOQ, i.e. only a single item should be considered in a single or der, determine the
optimal order quantity for each items
(A) 101,97, 128
(B) 95, 107, 120
(C) 105, 77, 178
(D) 75, 154. 180​

Answer 1

Answer:

Suppose you are working as an inventory manager with Walmart. You are assigned with the task

to determine EOQ for a batch of order containing three different items. The respective annual

demand for these itemsis 1000, 2000, and 3000 units respectively. The cost of item 1,2, and 3 are

50, 100, and 80, respectively Order cost for each item is also differentie 150 for Item 1, 140 for

Item 2, and 130 for Item 3. The maximum arrı ount that can be used for purchasing the goods are

$25,000 (Note that it includes the total cost of cach item multiplied by their respective EOQ

amount) and inventory holding cost for the company is 0 10 per unit Avoiding the basic

assumption of EOQ, i.e. only a single item should be considered in a single or der, determine the

optimal order quantity for each items

Answer 2

Answer:

option A is the answer 101,97,128