Determine the economic order quantity, Microeconomics

Assignment Help:

Question:

Describe the meaning of ABC inventory control and on what key premise is this system based?

The finance department of Electric Corporation gathered the following information: The carrying cost per unit of inventory is Rs10, The fixed cost per order is Rs20,the number of units required is 30,000 per year, the variable cost per unit ordered is Rs2 and the purchase cost price per unit is Rs30

Required:

(a) Determine the economic order quantity (EOQ)
(b) Determine the total number of orders in a year
(c) Evaluate the time-gap between two orders
(d) What modification is required in the basic EOQ analysis in order to cope with the problem of inflation?
(e) What are the limitations of the EOQ model?


Related Discussions:- Determine the economic order quantity

#title.elasticity of demand., different btn elesticity of demand and inelas...

different btn elesticity of demand and inelasticity of demand

What is the price of a call option on stock, Consider an economy with three...

Consider an economy with three states. The following set of stocks is traded:   x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4). The t=0 prices of these stocks are given as follow

Indifference curves, why men and womens indifference curves are different

why men and womens indifference curves are different

Why firm charges different prices to different consumer, Why firm charges d...

Why firm charges different prices to different consumer?  Every firm needs to maximize its profit. When goods are sold to different customers, each customer negotiate price of

Canon, analyze Swot of Canon

analyze Swot of Canon

Clean auto Inc, CleanAuto Inc. has four workers: Julie, Ian, Devon, and Tho...

CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in

Impacts on the mauritian economy, Problem: (a) Define money and briefl...

Problem: (a) Define money and briefly explain its core functions. (b) Explain the relationship between interest rate and price of bonds, illustrate using example. (c)

How much economic production had fallen, The idea for the national accounts...

The idea for the national accounts came during the 1930s depression in the U.S., when decision-makers wanted to get a better sense of by how much economic production had fallen. Si

Strength of the multiplier in microeconomics, Q. Strength of the multiplier...

Q. Strength of the multiplier in microeconomics? Multiplier: An initial stimulus to spending (in form of new consumer, business or government purchases) generally results in a

Write Your Message!

Captcha
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