Determine the economic order quantity, Microeconomics

Assignment Help:

Question:

Describe the meaning of ABC inventory control and on what key premise is this system based?

The finance department of Electric Corporation gathered the following information: The carrying cost per unit of inventory is Rs10, The fixed cost per order is Rs20,the number of units required is 30,000 per year, the variable cost per unit ordered is Rs2 and the purchase cost price per unit is Rs30

Required:

(a) Determine the economic order quantity (EOQ)
(b) Determine the total number of orders in a year
(c) Evaluate the time-gap between two orders
(d) What modification is required in the basic EOQ analysis in order to cope with the problem of inflation?
(e) What are the limitations of the EOQ model?


Related Discussions:- Determine the economic order quantity

Production function, Given the cost function as C=0.3Q3 -2Q2 + 13Q + 25, fi...

Given the cost function as C=0.3Q3 -2Q2 + 13Q + 25, find the supply function.uestion..

Demand curve, how does the charging the monoply a specific tax per unit aff...

how does the charging the monoply a specific tax per unit affect the monopoly optmum and 5the welfare of consumer

Monopoly, Tuan lives in a town with only one movie rental store. Suppose Tu...

Tuan lives in a town with only one movie rental store. Suppose Tuan’s demand for movie rentals per month is Q = 16- 2P . The movie store currently charges $5 per movie, but is thin

Determine the oldest ideas in economics, Determine the oldest ideas in econ...

Determine the oldest ideas in economics One of the oldest ideas in economics is that increases in technology certainly run into natural resource scarcity and so lead to increas

Estimating occupational structure, Estimating Occupational Structure of the...

Estimating Occupational Structure of the Labour Force within Economic Sectors in the Target Year The total output in the economy, the sectoral shares therein and labour produc

Analytical framework- shapes of graphs, ive been asked to compare shapes of...

ive been asked to compare shapes of graphs e.g. constant slopes increasing, decreasing, inelastc using the concepts of marginal and average changes?

Profit maximisattion, argument against in favour of traditonel theory prof...

argument against in favour of traditonel theory profit maximisation

Pooling, pooling in insurance

pooling in insurance

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