Calculate the economic order quantity, Strategic Management

(a) XUZ Company produces readymade garments for men. The purchasing officer collects the following information:-

              Annual demand for Jeans                      40,000 yards

              Ordering cost per purchase order           AED 120/-

              Carrying cost per year                          26% of purchase costs

              Safety-stock requirements                     None

              Cost of fabric                                        AED 10 per yard

The purchasing lead time is 3 weeks. The fabric center is open 250 days a year (50 weeks for 5 days a week).

(i)   Calculate the Economic Order Quantity (EOQ) for Jeans.

(ii)  Calculate the number of orders that will be placed each year.

(iii) Calculate the reorder point for Jeans fabric.

(iv) What are the steps in computing the cost of a prediction error when using EOQ decision model?

(b) What do you understand by backflush costing? Describe three different versions of backflush costing.   

Posted Date: 2/22/2013 5:59:46 AM | Location : United States







Related Discussions:- Calculate the economic order quantity, Assignment Help, Ask Question on Calculate the economic order quantity, Get Answer, Expert's Help, Calculate the economic order quantity Discussions

Write discussion on Calculate the economic order quantity
Your posts are moderated
Related Questions
Q. What is Uncontrollable costs ? Uncontrollable costs General apportioned fixed overhead e.g. group overhead allocated or apportioned to divisions, which would not b

Blueprinting a full-service travel agency experience 1.Present this service organisation as a blueprint with a flowchart and 500 words minimum.Flowchart Must show time dimensions

i have many question i need to apply it on Saudi company and i need your help

Controlling subsidiaries Mission statement, goals and objectives. Performance measurement systems e.g. financial ratios and multidimensional frameworks. Systems

advantages of outbound logistics management

Define Managerial Process of Crafting & Executing Strategy the managerial ins & outs of crafting & executing company strategies. Special thought is given to management's direc

Question: (a) Company mergers are major change projects. Briefly explain the IT merger process involved. (b) A study showed that successful steering committees introduce a

Using online research and the resources on the Student Portal, select and undertake market research of 2 possible "emerging economy" countries where Eatmore & Green might be able t

One rich seam of experimental data comes from meteorological measurements.  Thousands of measurements are recorded each day by the Australian Bureau of Meteorology (BoM). This assi

a) Use appropriate tools to examine the  affects of present business plans. b) Review the position of an organization in its present market. c) Measure the competitive strengths