CLA 2 Comprehensive Learning Assessment 2 – CLO 4, CLO 5, CLO 6, CLO 7

You are in charge of a manufacturing plant. Using your skills related to the Economic Order Quantity (EOQ) model and Economic Production Quantity (EPQ) model for two different work scenarios, your next task is to:

- Use EOQ to calculate:

the Annual Demand, the Annual Holding Cost, the Quantity to be Ordered, the Total Annual Cost, and the Reorder Point. Provide a list of the assumptions that you make.

Given EOQ Parameters from your log:

Weekly Demand = 240 units

# of weeks per year = 52

Ordering Cost = $50

Unit Cost = $15

Annual Carrying Charge = 20%

Lead Time = 2 weeks

- Use EPQ to calculate:

the Annual Demand, the Adjusted Total Cost, the Quantity to be Ordered, The Maximum Inventory, and the Adjusted Order Quantity.

Given EPQ Parameters from your log:

Annual Demand = 8,000 units

Production Rate = 2,500 units/month

Setup Cost = $800

Annual Holding Cost= $18 per unit

Lead Time = 5 days

No of Operating Days Per Month = 20

- Provide an overview of the presumptions that you have made. What are your conclusions? When would you use an ABC-analysis and how would that work?

Your 6-8-page, APA-formatted paper must include an introduction and a clear thesis, several body paragraphs, and a conclusion. Implement the concepts learned in this course. All supporting information (four resources minimum) must be properly identified, cited, and referenced following APA-7th Edition style. Top papers demonstrate a solid understanding of the material with both qualitative and quantitative elements AND critical thinking.