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 yellow pages listed a funeral home under what, In 1980 the Yellow P...

In 1980 the Yellow Pages listed a Funeral Home under what

Rules related to the arrangement of the work place, Related to the arrangem...

Related to the arrangement of the work place: 1.       There  should  be a definite and fixed place  for all tool sand material. 2.        Tools  materials and controls sho

Explain if you agree abandoned the property, As an appellate judge, you hav...

As an appellate judge, you have been assigned the following court case. When Gayle Benz left her husband, Jeffrey, she left personal property valued at $10,000 at their residence.

Principle of motion economy, Principle of Motion Economy: The improvem...

Principle of Motion Economy: The improvement of any method is generally  accomplished using the ideas chosen from the alternatives  throw up during the critical examination ph

Explain chemical pollutant, A veterinarian is estimating the degree of asso...

A veterinarian is estimating the degree of association between the exposure/non-exposure of cats to a chemical pollutant and the incidence of a particular respiratory illness among

Explain what are the major problem issues facing sandy, After reading the C...

After reading the Concluding Case entitled "Barbara's World of Windows, Fabrics, and Accessories", what are the major problem issues facing Sandy, and what specific recommendations

I want a broke down step by step solution, I have looked at your solution a...

I have looked at your solution and I still do not understand how you get the numbers put in for flow time from the information given. I understand how to calculate everything after

Explain technologies to keep the organization competitive, Select an organi...

Select an organization. Who are the stakeholders of your selected organization? How would the stakeholders be affected by the failure of the organization to keep up with new techno

Explain what are your recommendation to resolve this lawsuit, Scenario: Com...

Scenario: Commerce Clause ABC Freightways maintained its principal place of business in Arkansas. However, they provided trucking services in all states west of the Mississippi

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