Solution-Cost of one procurement, A particular item has

Cost of one procurement

Assignment Help Business Economics

Reference no: EM13904767

A particular item has demand of 3000 units per year. The cost of one procurement is Rs. 100 and the holding cost per unit is Rs. 2.40 per year. The replenishment is instantaneous and no shortages are allowed.

Determine:

(i) the economic order quantity

(ii) the number of orders per year

(iii) the time between orders and

(iv) the optimum cost per year

Reference no: EM13904767

Questions Cloud

Describe the process in the money market : Describe the process in the money market (demand and supply of/for money) by which the interest rate reaches its equilibrium value if it starts above equilibrium.

Accompanying verbal explanation : Does trade under increasing returns to scale still make both countries better off, as the constant-returns-to-scale H-O model shows? Answer this question using both your diagram and an accompanying verbal explanation.

Levels for divisions and management structures : Discuss the importance of the levels for divisions and management structures. Also discuss how multidivisional structure of hierarchy in an organization helps in decentralized decision making.

Data analyst for the excellent consulting group : You are working as a data analyst for the Excellent Consulting Group. Your client, Buddy’s Floor Barn, wants to analyze how they are doing in their 18 locations in four regions across their 10 product lines over the last 3 quarters

Cost of one procurement : A particular item has demand of 3000 units per year. The cost of one procurement is Rs. 100 and the holding cost per unit is Rs. 2.40 per year. The replenishment is instantaneous and no shortages are allowed.

What is the average throughput time for table of customers : A small restaurant has 30 tables. When guests arrive, the manager seats them, servers serve them, and then the customers pay their bills. It takes the manager 1 minute to find a table for customers. What is the capacity of the system and the bottlene..

What safety margin of stock is being carried : The daily demand of an item is 1600 units. The average processing time is 25 seconds per unit. Containers (carrying 250 items) on the average wait for 6 hours before being processed. Currently 10 containers (Kanbans) are being used for this parts. Wh..

Percent of the investment in the inventories : The production department for a company requires 7200kg of raw material for manufacturing particular item per year. It has been estimated that the cost of placing an order is A 72 and the cost of carrying inventory is 25 percent of the investment ..

In a political system that values religious freedom : In a political system that values religious freedom, how can radical religious extremism be mitigated? Explain your ideas.

User Account

All Pages

Cost of one procurement

Reference no: EM13904767

Reference no: EM13904767

Questions Cloud

Reviews

Write a Review

Business Economics Questions & Answers

Economics assignment

Demand and supply curves

Long-run perfectly competitive equilibrium for the firm

Supply and demand diagrams

Case study: fisher-price toys

Draw the production possibility curve

Tax revenue

Maximize total welfare

Difference between the cv and the ev

Depict von neumann-morgenstern utility index u in a diagram

What is the market solution

Calculate gross national product and net national product

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT