Find the minimum-cost procurement quantity

Assignment Help Operation Management
Reference no: EM131639481

The demand for a certain item is 200 units per month. Unsatisfied demand causes a shortage cost of exist100 per unit per month. The cost of initiating manufacturing is exist500.00 and the holding cost is exist1.50 per unit per month. Production cost is exist100.00 per unit and the item may be produced at a rate of 500 units per month. Each item consumes 2.5 cubic meters of warehouse space. The warehouse space reserved for this item is limited to 150 cubic meters. a. Find the minimum-cost procurement quantity and the procurement level under this restriction if the lead time is 1 month. b. What is the cost penalty per month due to the warehouse restriction?

Reference no: EM131639481

Questions Cloud

Discuss the development of critical thinking skills : How do you think noticing details of a film and analyzing film components assists you in the development of critical thinking skills
Analyze if breaking silos helps with conflict management : Analyze if breaking silos helps with conflict management in cross functional teams? Explain with examples?
Security threats in the android os domain : Instead of saying you will research "Computer Security" - about a narrow topic like "Security Threats in the Android OS domain"
How to simulate the number of cars bill sells : Describe how you would simulate the number of cars Bill sells in an afternoon. You must first simulate the number of customers, then simulate the buying.
Find the minimum-cost procurement quantity : Find the minimum-cost procurement quantity and the procurement level under this restriction if the lead time is 1 month.
What can you do to retain current employees : What can you do to retain current employees? What are the benefits of retention?
The planning stage of a new construction project : What three key questions would you ask clients in the planning stage of a new construction project?
Cultural background and leadership style : which implementation approach would you be most comfortable using, given your personality, cultural background, and leadership style?
Discuss what do you think constitutes a great film : What do you think constitutes a great film. Would you consider any of the films you have recently watched to be great. Why or why not

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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