Management and Organizational Studies 3330A/B Study Guide - Midterm Guide: Demand Forecasting, 21 Days, Lead Time

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3330A/B
• Professor: Rick Burjaw

Document Summary

Test 1 review problems and solutions: computational questions (i) (ii) (iii) Note on rounding: general rule #1: in most cases, just use normal rounding. For example, 32. 15 should be rounded down to 32 if the final answer has to be an integer (e. g. , order quantity). This works for eoq, epq and forecasting: general rule #2: for all intermediate calculations, use the decimal numbers (2 or 3 decimal places will suffice). For example, one question asks you to calculate eoq and the total cost. Then 32. 15 will be rounded down to 32 in your final statement of what the order quantity is. In order to calculate the total cost, however, use 32. 15 in the tc formula: exception: for example, eoq = 32. 15 and rounded down to 32. Let"s say that the annual demand is 1000. Based on these numbers, the number of orders = d/q = 1000/32. 15 =