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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.
When Scott Tweedy picked up a magazine article on how to manage health care workers, he was pleased to some advice. Scott was concerned about poor or mediocre performance on
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Hierarchical planning in operations/production management and types of time frames in each hierarchy
a. You are chartered to set a time standard for a worker assembling 96 piece jigsaw puzzles. The following times have been collected from five different operators with one observat
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Assume you are the responsible senior executive of a hospital in a city with a population of 30,000 people, located about 50 miles away from a large city. What would be the danger
Dilution In the previous problem, what would the ROE on the investment have to be if we wanted the price after the offering to be $73 per share (assume the PE ratio still remains c
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