The annual demand for a specific component

Assignment Help Operation Management

Reference no: EM13962691

The annual demand for a specific component is R2500. It can be purchased at a cost of R25 each with a cost of R5 per order. An alternative is to manufacture it, in which case 10000 units can be produced annually at a set up of R50 per run and a unit cost of R22. The inventory holding cost is 10% of unit cost. Advise the inventory manager on whether to buy or manufacture this item.

Reference no: EM13962691

Questions Cloud

Concession to sell glazed donuts : The university has given Vecino’s Bakery the concession to sell glazed donuts in the Graduate School of Business Administration during evening classes. It costs the bakery $.15 to produce each donut, and Vecino’s sells the donuts to students for $0.3..

Develop a plan for purchasing and cleaning : Mary's major at State is Management Science and she wants to develop a plan for purchasing and cleaning sheets using Linear Programming. Help Mary formulate a Linear Programming Nodel for this problem and solve it using the computer.

What was the historical scope of telecommunications : What was the historical scope of telecommunications?

Prima facie indicators of discrimination : Prima Facie Indicators of Discrimination a. Average benefits minorities and women receive compared to others b. Proportions of minorities and women at lowest economic levels c. proportions of minorities and women at highest economic levels. What woul..

The annual demand for a specific component : The annual demand for a specific component is R2500. It can be purchased at a cost of R25 each with a cost of R5 per order. An alternative is to manufacture it, in which case 10000 units can be produced annually at a set up of R50 per run and a unit ..

Crisis management and reaction plan-contingency plan : Determining an alternative course of action if events in the external world take an unexpected turn, either upward or downward, is the basic idea behind what type of plan?

What aspects of the flexible budget performance report : What aspects of the flexible budget performance report should be brought to management's attention? Explain.

Monthly demands at a minimum cost : Riley's produces two grades of ice cream-creamy and premium. Both are produced by blending two types of dairy mixes. Both dairy mixes contain different amounts of butter fat and skim milk. Their cost per gallon varies accordingly

Study the different type of interview techniques and write : Study the different type of interview techniques and write in detail about them.

User Account

All Pages