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 quality will be expected of health care providers, What tools and v...

What tools and value added quality will be expected of health care providers? What changes will health care providers need to make to be competitive and gain consumers and maintain

Explain how technology can help your suggestions, Come up with 3 businesses...

Come up with 3 businesses that do not need technology to compete, and then demonstrate how technology can help your suggestions be more successful. For example - a hot dog stand. F

Explian more and more people working together is called, The inefficiencies...

The inefficiencies created by more and more people working together is called

Define the main considerations regarding logistics alliances, What are the ...

What are the major considerations regarding logistics alliances, for: a) initiation? b) implementation? c) maintenance? d) termination?

Explain trial balance, Explain Trial Balance. Trial Balance : After po...

Explain Trial Balance. Trial Balance : After posting all journal entries in the ledger, a statement termed as trial balance is prepared to check the accuracy of postings in th

Linear programming, what is the operation management in linear programming

what is the operation management in linear programming

Explain the leadership characteristics, Provide two examples of current lea...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

Internal factors - factor affecting productivity improvement, Internal Fact...

Internal Factors - Factors affecting productivity improvement These are the factors which may be modified by the company and may, in themselves, be sub-divided into two catego

Explain modifications to the franchisor''s product offering, Do you think t...

Do you think that franchisors should allow franchisees to make modifications to the franchisor's product offering, explain? Please put in your own words

Describe potential key changes in the external environment, Discuss potenti...

Discuss potential key changes in the external environment, specifically competition and technology including communications that Sigma will face in the future. Which will have the

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