Managerial problems  Economics homework help
Assignment Problems (28 points in total):
1. Ray’s Satellite Emporium wishes to determine the best order size for its bestselling satellite dish. Ray has estimated the annual demand for this model at 5,000 units. His cost to carry one unit is $80 per year per unit, and he has estimated that each order costs $20 to place.
Using the EOQ model, how many should Ray order? Please provide the formula, at least one step of calculation, and the correct order size for full credit.(6 points)
2. Given the following information, formulate a continuousreview inventory management system. The item is demanded 50 weeks a year.
Item cost 
$20 
Standard deviation of weekly demand 

Order cost 
$250 
25 per week 

Annual holding cost (%) 
10% of item cost 
Lead time 
1 week 
Annual demand 
25,000 
Service probability 
95% 
Average demand 
500 per week 


Compute the order quantity and reorder point. (14 points)
For order quantity, please provide the formula, at least one step of calculation, and the correct value for full credit.
For reorder point, please provide the formula, at least one step of calculation, the correct z value, and the correct answer for full credit.
3. A company needs to establish kanbans to feed a new work cell. The following data have been provided.
Weekly demand 
800 units 
Production lead time 
1 week 
Container size 
40 units 
Smoothing factor 
1.3 
(a) How many kanbans are needed? Please provide at least one step of calculation and the correct answer for full credit. (4 points)
(b)How many containers are needed? Please provide at least one step of calculation and the correct answer for full credit. (4 points)