Calculate the economic order quantity

Assignment Help Operation Management
Reference no: EM132149

QUESTION

(a) With reference to examples, discuss the concept of P: D ratio and its utility in operations management

(b) Discuss the essential conditions to be present for the successful implementation of Just-in-time stock management system in an organisation

(c) A company requires a part X at the rate of 1000 units per week. Each unit costs Rs. 50 when purchased from the current supplier. The ordering cost associated with placing an order with the current supplier is Rs. 300. The interest rate is assumed to be 10% per year and the warehousing costs associated with storage and maintenance are Rs 10 per unit per year

(i) Calculate the Economic Order Quantity

(ii) Your current supplier is prepared to give you three options for ordering-

- You continue as at present with the EOQ; or

- You can have a 5 percent reduction in the unit price if you order at least 10,000 units per order; or

- You can have a 10% reduction in the unit price if you order at least 30,000 units in each order

Which of these options would you recommend? Give your reasons

Reference no: EM132149

Previous Q& A

  What is capacity planning

How does the Kanban process focus on the individual within the teamwork concept and How is the Kanban process linked to the Kaizen process and What is capacity planning

  Define a project and describe its characteristics

Define a project and describe its characteristics and What are the necessary competencies and skills of a project Manager?

  The factors that influence the monitoring of project work

What are the activities that are related to the Management of Project Execution? (b) Monitoring is an aspect of Project Management performed throughout the Project. What are the factors that influence the monitoring and control of project work?

  What do you understand by net present value

You are the project manager of a leading textile engineering company. The company opened its door in year 2000. Today, after 13 years of existence, it is being challenged with a loss in profitability approximating a 65% loss in net revenue

  The expectancy theory of motivation

Project managers often focus more on project needs and neglect the human resource aspect with little attention given to motivate the project teams. With short notes explain- (i) The expectancy theory of motivation (ii) The equity theorem

  What do you understand by the term scheduling

What do you understand by the term Scheduling? Explain how the following ways for duration compression of a project can be achieved- Fast tracking Crashing

  Distinction between personnel and human resource management

Discuss the major factors in recent times that have strengthened the argument that people are assets not costs. Use examples to illustrate your answer (b) What are the major distinctions between personnel management and human resource management?

  Discuss the role of total quality management in that sphere

Organisations use multiple business management strategies to ensure its optimal performance. Discuss the role of Total Quality Management in that sphere

  Personality development important for people

The concept of personality is so broad that it is difficult to define precisely. One definition that has stood the test of time was proposed by Allport (1937) who said Personality is the dynamic organization within the individual of those psychoph..

  Explain the meaning of business process outsourcing

Explain the meaning of Business Process Outsourcing (BPO) BPO deals mainly with non-core processes of an organization. Explain four of such type of processes List and briefly describe three drivers and three inhibitors (risks) for BPO

Reviews

Write a Review

 

Similar Q& A

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Produce a management report

You are required to produce a management report from the perspective of a consultant, reporting back to your client - the CEO of an overseas museum.

  Operations management problem relating to an organisation

Operations Management problem relating to an organisation with which you are familiar and undertake a critical review

  Operational process

Find one scholarly journal article reporting on one or more of the following techniques: business/predictive analytics, dashboards, decision support systems, supply chain management.

  Pert/cpm techniques

Discuss the use of PERT/CPM techniques for managing projects. Describe what PERT/CPM does. Discuss advantages and disadvantages of using it.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Shortest-route technique

Minimal-spanning tree technique and Shortest-route technique

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Multiple regression analysis

Multiple regression analysis based on the assumptions of linearity and normality.

  Identify the major issues in given situation

Identify the major issues, discuss how the problem has been handled by the employee's supervisors to date, and evaluate how her present superior is handling the situation

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