2 Assignments. 2 no later than Wednesday afternoon

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ASSIGNMENT 1:

Consider the following companies:

Walmart
General Motors
A local doughnut shop with 2 employees

Which of those companies is most likely to use the EOQ model for ordering inventor? And which is the least likely? Support your answer fully!

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ASSIGNMENT 2:

Aqua Pure purchases 50,000 gallons of distilled water each year. Ordering costs are $100 per order, and the carrying cost, as a percentage of inventory value, is 80 percent. The purchase price to CCC is $0.50 per gallon. Management currently orders the EOQ each time an order is placed. No safety stock is carried. The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount? WHY?

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