Average inventory value

Assignment Help Operation Management
Reference no: EM131350348

Using the following information, obtain the EOQ and the total variable cost associated with the policy of ordering quantities of that size. Annual demand = 20,000 units, ordering cost = Rs. 150 per order, and inventory carrying cost is 24% of average inventory value.

Reference no: EM131350348

Questions Cloud

Determine the optimum cost : The purchase cost of product is Rs.60 per unit. The cost of ordering and transportation from the supplier is Rs.150 per order. The cost of carrying inventory is estimated at 15 % per year of the purchase cost. Find the lot-size that will minimize ..
Discuss the type of yield curve presented in the graph : Research the current mortgage interest rates for a 10-year, 15-year, 20-year, and 30-year loan.In Excel, graph the interest rates using years as the X-axis and interest rates as the Y-axis.
Frequently should order for rivets : A company uses rivets at a rate of 5,000 kg per year, rivets costing Rs.2 per kg. It costs Rs.20 to place an order and the carrying cost of inventory is 10 % per annum. How frequently should order for rivets be placed and how much?
Manufacturer purchases lubricants : An oil engine manufacturer purchases lubricants at the rate of Rs. 42 per piece from a vendor. The requirement of these lubricants is 1,800 per year. What should be the order quantity per order
Average inventory value : Using the following information, obtain the EOQ and the total variable cost associated with the policy of ordering quantities of that size. Annual demand = 20,000 units, ordering cost = Rs. 150 per order, and inventory carrying cost is 24% of aver..
What are the solutions to this equation : She knows that she can locate the vertices of a regular hexagon by graphing the solutions to the equation x6 - 1= 0 in the complex plane. What are the solutions to this equation?
Discuss common issues and lessons present in both stories : Describe your change story and the one selected from Chapter 1 of the text.Discuss the common issues and lessons present in both stories.Identify and discuss the embedded lesson found in the four change stories of Chapter 1.Describe how you might use..
What is time study : What is Time Study? What are the different equipment used for time study? Explain the process of Time Study?
Under what president was nafta formed and why : What is NAFTA? Under what President was NAFTA formed and why? What countries are linked? What are the advantages and disadvantages of the trade agreement?

Reviews

Write a Review

Operation Management Questions & Answers

  A university web server has five main components

A University Web server has five main components each with the same reliability. All five components must work for the server to function as intended.

  How many bottles should purchase to maximize expected profit

You are tasked with ordering bottled water for an upcoming outdoor event. Bottles cost you $0.10 a piece and you can sell them that night for $2. Any Bottles of water not sold that night can sell to a secondary market for $0.05 a piece. Expected..

  Describe how they have evolved over time

Describe how they have evolved over time. Include references to the moral philosophy or social issues which affect your approach to the development of this Code of Ethics.

  Which of the following is least important as a consideration

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

  The potential costs associated with inventory theft

The potential costs associated with inventory theft are quite high. Employee theft of goods in merchandising companies is generally higher than in other types of industries. How can an automated inventory system help detect employee inventory theft? ..

  Packages for the human computer interface layer

Sweetbriar College is redesigning their course registration system [CRS]. They plan for this system to be web-based, but first you need to model the main system behind the web interface. Here is a description of the interactions with the proposed CRS..

  Should you agree to the given offer

Suppose you have 10 shipments to make, each of which weighs 800 pounds. The carrier offers to consolidate them into one shipment of 8,000 pounds but will charge an additional $300 (total) to do so. Should you agree to this offer?

  Non-toxic-makeup via direct distribution

Ava Anderson's cosmetics company, Ava Anderson Non-Toxic, grew from a teenager's alarm at discovering that most personal care products contain harmful ingredients, including carcinogens and endocrine disrupters. Is direct distribution appropriate for..

  An effective mentor

An effective mentor:

  Problems associated with employment interviews

“Interviews are the most widely used, but the least valid selection method.” Discuss this statement. What are some of the uses and problems associated with employment interviews

  Contrast to how project management teams are evaluated

In more of a micro sense, what is the difference between how traditional teams are evaluated for effectiveness in contrast to how project management teams are evaluated?

  Describe the functionand scope of the federal agency

Describe the function, mission and scope (work) of the federal agency you have selected - Discuss the types of issues this agency addresses.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd