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 biggest barriers to widescale adoption of m-commerce, What do you t...

What do you think are the biggest barriers to wide-scale adoption of m-commerce by consumers? Who do you think is working on solutions to these problems and what might the solution

Define constraint its associated binary decision variables, Consider the fo...

Consider the following constraint and its associated binary decision variables: XA + XB + XC = 2. This constraint is an example of a mutually exclusive constraint.

Explain stakeholders of a company are shareholders, Stakeholders of a compa...

Stakeholders of a company are shareholders, the community, customers, employees, and all of the other parties that have an interest in seeing that the company succeeds. True False

Find associated costs and revenues increase the capacity, A small firm inte...

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and reven

Describe the difference between consumer products, Explain the difference b...

Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a

Explain what contract type puts more risk on the buyer, What are the differ...

What are the different types of contracts and how do they impact risk? What contract type puts more risk on the buyer? What contract type puts more risk on the seller?

Facility layout - process design, Facility Layout - Process Design In ...

Facility Layout - Process Design In addition to the sequence of the processes, consideration must also be given to their physical layout in relation to each other. This is an

Linear programming problem, Explain the graphical method of solving Linear ...

Explain the graphical method of solving Linear Programming Problem

Construct a markov chain and its steady-state probabilities, Suppose that a...

Suppose that at any period of time a photo-copier machine can either be working properly, in need of maintenance, in need of minor repair, or in need of major repair. If the photoc

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