Reference no: EM132425666
Minimizing Inventory Cost: EOQ model for Construction materials Project
Practical task question: Consider that your role in ABC constructionmaterials company is Inventory analyst. The Procurement manger will ask you to Perform EOQ analysis (Economic Order Quantity) for the company's ConstructionInventory Items with given inputs. The total time given to you to perform this task is 4 hours. Being an Inventory analyst how would you submit/produce the EOQ analysis report to your Procurement manager for the given inputs?
|
SI.No
|
Item name
|
Annual Demand
|
Ordering Cost (shipping /transportation)
(OMR)
|
Annual Holding cost (Carrying cost in the inventory)
(OMR)
|
Unit price (OMR)
|
Lead time to receive the order(days)
|
|
1
|
Cement
|
23,000 bags
|
85.000
|
5.000
|
110.000/ bag
|
10
|
|
2
|
Metal Aggregates
|
282 bags
|
350.000
|
10.000
|
550.000/ bag
|
6
|
|
3
|
Steel
|
240 tons
|
210.000
|
15.000
|
250.000/ ton
|
8
|
|
4
|
Bricks
|
4500 bricks
|
2.000
|
1.000
|
5.000/ Piece
|
9
|
Sample template for performing the Practical task:
EOQ analysis for the above need to be performed in MS Excel application showing following scenarios:
Sheet 1: Practical task Question as above need to be typed.
Sheet 2: Rename the Sheet2 as Cement and show the EOQ analysis for this item,which should show the result summary of:
i) EOQ (how much to order / order quantity/ order size)
ii) N (Number of times to order in a year)
iii)R/ ROP (ReOrder Point) when to place the
next order?
iv)Show how EOQ minimizes total Inventory
cost? (you can use graph/ table to summarize this)
Sheet 3, Sheet 4, Sheet 5: Rename the Sheet 3 as Metal Aggregates, Sheet 4 as Steel and Sheet 5 as Bricks and perform the same task as done for Cement
Sheet 6(optional): Produce the summary for all the above 4 construction siteinventory items in terms of graph or table.
"Add your creativity for summarizing the result in each of the sheets"
|
What was the inventory turnover ratio
: Selected information for 2018 is: cost of goods sold, $5,000,000; Assuming a 360-day year, what was the inventory turnover ratio for 2018
|
|
Ashford 375 continuous quality improvement
: Nurses are responsible for upholding the public's trust as well as their health care organization's reputation and its financial viability.
|
|
Impact of budget changes and implementation revenue expenses
: The functions of the manager of health services in the area of budget planning.The different types of funds that make up the United States Health System.
|
|
Discussing the importance of statistics and criminal justice
: Write a 2 page paper discussing the importance of statistics and criminal justice. APA / 2 pages not including title page or reference page.
|
|
Consider that your role in abc construction materials
: Consider that your role in ABC constructionmaterials company is Inventory analyst. The Procurement manger will ask you to Perform EOQ analysis (Economic Order Quantity) for the company's ConstructionInventory Items with given inputs. The total time g..
|
|
Calculate the common stock equity
: Marley Corporation has 50,000, 3%, $100 par preferred shares outstanding. Total stockholders' stock equity is $10,000,000. Calculate the common stock equity
|
|
What is application service provider asp
: Question 1: How can the weaknesses in the systems-development life cycle SDLC be fixed? (200 words)
|
|
Describe the constitutional restraints in brief
: How is organized crime law enforcement limited by constitutional restraints? Do you think law enforcement should be restricted? Why or why not?
|
|
Calculate the cost per equivalent unit of material
: Assume 9,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. Calculate the cost per equivalent unit of material
|