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

Routing, Routing Meaning and Definition Routing is the first bu...

Routing Meaning and Definition Routing is the first but the important and difficult task of the production control. Routing means determination of path or route on whic

Explain project procurement management, When concerned with project procure...

When concerned with project procurement management regarding a project, list the different steps of the supply process and reasons why or why not the project would have been more s

Describe the importance of each in relation to outsourcing, List five consi...

List five considerations to consider when starting to define the scope of the business process outsourcing transaction and discuss the importance of each in relation to outsourcing

Compute a schedule using least-total-cost lot sizing, Brunswick, read an ar...

Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick's engine assembly operations and decided

Principles and Practices of Management, How will you influence people to st...

How will you influence people to strive willingly for group objectives in your organization (target based industry)? Apply your interpersonal influence through communication proces

Explain the managerial process, The Managerial Process text. Given the proj...

The Managerial Process text. Given the project network provided, compute the early, late, and slack times for the project. Share your calculations and explain how you came up with

Level capacity plan, Level Capacity Plan The inventory size is varied ...

Level Capacity Plan The inventory size is varied keeping the workforce size and utilization of work constant. The number of workers ( working size) is kept constant throughout

Compute expected value for the add assembly line option, Howard Weiss, Inc....

Howard Weiss, Inc., is considering building a sensitive new airport scanning device.His managers believe that there is a probability of 0.40 that the ATR Co. will come out with a c

Explain replacement are covered under the adea, Harvey Jameson was recently...

Harvey Jameson was recently terminated as comptroller at the age of 66 from Better Beef, Inc. His replacement is Tammy Parker, age 45. Because both he and his replacement are cover

Identify the most vital factors in each perspective, Summarize the classica...

Summarize the classical, behavioural and quantitative perspectives on management Identify the most important factors in each perspective

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