Determine the economic order quantity

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Reference no: EM133917413

Assignment:

Task 1:

As a purchasing manager of a company, TFL (Pty) Ltd, that sells engineering parts, with a favorable introduction to supply chain planning and inventory control of the company, consider the below five (5) points and answer the questions: Include scholarly sources between 2019 and 2023 with in-text citations in your essay and APA 7th edition referencing styles.

Details: ITEM_X19 is one of the most popular items. You have the following data on ITEM_X19: - Annual demand (D): 5,000 units - Inventory carrying cost (H): 8€ per unit per year - Ordering cost (S): 40€ per order - Number of working days per year: 250 days per year - Lead time for an order to arrive from the supplier (I): 4 working days.

Questions:

1) Determine the Economic Order Quantity;

2) Identify the optimal number of orders per year;

3) Calculate the expected time between orders;

4) Determine the total annual inventory cost (carrying cost + ordering cost);

5) Locate the reorder point.

Task 2:

You are a supply chain consultant engaged by TFL (Pty) Ltd, which aims to enhance its supply chain planning. Your role as a consultant involves evaluating the existing planning process of the company, identifying areas for improvement, and presenting recommendations to persuade the management team of your value. Your essay should articulate the current planning framework, assess the level of collaboration, and pinpoint inventory management practices that require enhancement. Provide a comprehensive introduction to supply chain planning and inventory control, incorporating scholarly sources published between 2019 and 2023, along with appropriate in-text citations and adherence to APA referencing style in your essay.

Reference no: EM133917413

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