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 produced and sold to break-even, Assume a fixed cost for a process ...

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following

Explain administrative issues, Unit IV: At the Bargaining Table Unit V: Gri...

Unit IV: At the Bargaining Table Unit V: Grievances and Arbitration Unit VI: Wage Issues and Economic Supplements Unit VII: Institutional Issues Unit VIII: Administrative Issues

Job shop organisation - operations function, Job Shop Organisation - Operat...

Job Shop Organisation - Operations Function Job shop systems generate special products or services to customer specification, with little likelihood that any particular produc

Explain the most appropriate for domino''s to consider, Evaluate alternativ...

Evaluate alternative structures to determine which one would be most appropriate for Domino's to consider and discuss likely benefits Domino%u2019s would realize from adopting that

Idle time, how to calculae idle time if 8hours shift and cycle time 8 the q...

how to calculae idle time if 8hours shift and cycle time 8 the quantity produed is 40

Explain the framework of the general model of planned change, Describe the ...

Describe the framework of the general model of planned change. Include a discussion of each activity and a typical sequence of events.

Value of a Loyal Customer (VLC), A manufacturer of business copier workstat...

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead

Explain how the components of the hawthorne study, Describe how the compone...

Describe how the components of the Hawthorne study are incorporated in current human resource functions? What was the main idea behind this study?

Explain why do firms engage in fdi, Why do firms engage in FDI when alterna...

Why do firms engage in FDI when alternatives such as exporting and licensing are available? How do location-specific advantages influence organisational decisions on FDI?

Explain what are the problems that walmart has faced, What are the problems...

What are the problems that Walmart has faced and what has the company done to address

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