Detrmine the economic order quantity, Operation Management

Assignment Help:

Question:

(a) ‘Stock is often said to be the biggest evil in any business, yet firms still keep stocks.' Discuss the reasons for keeping stocks.

(b) Discuss the main costs involved in keeping stocks.

(c ) The demand per month for a spare part is 200 units. The storage space cost per unit per year is Rs20. The cost for ordering the spare part is Rs35 per order. Each unit of the spare part is Rs150 and interest rate is at 10%.

(i) Detrmine the economic order quantity.

(ii) Find the total cost.

(iii) The purchasing manager got an offer of a discounted price of Rs140 per unit if he orders in lot sizes of 600. By performing the necessary calculations indicate whether he should shift to the new policy instead of using the EOQ.


Related Discussions:- Detrmine the economic order quantity

Explain diagnostic equipment and communications, Last year, the manager of ...

Last year, the manager of the service department at East Woods Ford instituted a customer opinion program to find out how to improve service. One week after service on a vehicle wa

Post industrial society - operations function, Post Industrial Society - Op...

Post Industrial Society - Operations Function In the post -industrial society, industrial production has become so efficient that the average worker can now afford products th

Explain elements of a typical scope statemen, Analyze the elements of a typ...

Analyze the elements of a typical scope statement and the significance of each element. As a project leader, determine how you would communicate the scope of a project to the proje

Explain what variables should be eliminated, What do you think is the purpo...

What do you think is the purpose of the U.S. Census, which takes place every 10 years? What are some of the variables recorded for the U.S. population? How are these variables usef

Transaction Processing Systems, Discuss the organization structure and oper...

Discuss the organization structure and operation of a university. identify the different types of Transaction Processing System that can be defined for the university specify the d

What are disadvantages of delegated sourcing strategies, What are the disad...

What are the disadvantages of using delegated sourcing strategies? Disadvantages of using delegated sourcing: a. Can be a complicated relationship to manage an outsourcer

Explain focuses on the customer relationship, Choosing which processes are ...

Choosing which processes are core to a firm's competitive postition is a key strategic decision. For example, Nike, a popular sports shoe company, focuses on the customer relations

Explain significant barrier to good customer service, Is employee turnover ...

Is employee turnover ever a significant barrier to good customer service? Why, or why not?

Explain balogun and hailey change model, This post should be at least 200 w...

This post should be at least 200 words in length. Select one of the following approaches to understanding or implementing organizational change. Summarize this approach. Provide

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