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 objectives of job evaluation, Explain objectives of job evaluatio. ...

Explain objectives of job evaluatio. Objectives of job evaluation: a) Decides the relative values of various jobs in an organization.  b) Helps to formulate a suitable a

Explain one example from your professional experience, The process of outso...

The process of outsourcing the creation of a product or a service is a controversial, yet critical strategic decision for many employers. Describe one example from your professiona

Determine the effect of facility layout of an organisation, What effect doe...

What effect does your organisation's facility layout have on the following (where appropriate): inter-process movement; health & safety; congestion; resource utilisation; work-in-p

Explain does a valid contract exist between two persons, You are currently ...

You are currently an intern working for the largest law firm in Alabama. Your mentor and senior attorney introduces you to a new client, Dick Jefferson, the owner of House Doctor,

Explain interpersonal skills, You work in a new organization. You have been...

You work in a new organization. You have been charged with recruiting a manager for a new department within the Services division. The Vice President of the Services division stres

Explain an environmental scan or swot analysis, Conduct an environmental sc...

Conduct an environmental scan or SWOT analysis of Azul Linhas Aéreas Brasileiras's current reality and recommend whether the company's current strategy is poised to succeed

Explain the operation of a subway sandwich shop, Using the concepts that yo...

Using the concepts that you learned in online explanation of control theory, describe the operation of a Subway sandwich shop. Be sure to describe which of the Control Theory's wou

Explain major sources of commercial-grade frozen pizza, A large hotel-casio...

A large hotel-casion in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to

Explain how contracting fits into the acquisition program, Describe how you...

Describe how you think contracting fits into the acquisition program. Feel free to use some of your own experiences and examples

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