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

Want help creating database using microsoft access, Need help creating data...

Need help creating database using Microsoft access. Please see question. Please create a new database called Automobiles for North East Honda dealership. The database will have

Explain projected return on the owner''s equity investment, Carter Dalton i...

Carter Dalton is well on his way to starting a new venture-- Max, Inc. He has projected a need for $350,000 in initial capital. He plans to invest $150,000 himself and either borro

Describe contract type selected was incorrect, This case study will be disc...

This case study will be discussed and reviewed in the Case Study discussion question for the week. Post your responses to the questions at the end in the Case Study discussion ques

Compute the estimated sample size needed, Practical Application Scenario 2 ...

Practical Application Scenario 2 To complete this scenario, use the Sample Size Estimator file provided in the Resources. The third shift at Microsoft's Windows' security uni

Explain network design is a key business decision, Network design is a key ...

Network design is a key business decision as well as a technological decision. Why? Provide an example of a company you believe has a good network design, providing supporting rati

Describe what would the roe on the investment, Dilution In the previous pro...

Dilution In the previous problem, what would the ROE on the investment have to be if we wanted the price after the offering to be $73 per share (assume the PE ratio still remains c

Explain graph based layout construction method, Is the Graph based layout c...

Is the Graph based layout construction method always produces maximally Planar Graph & Maximally Planar weighted graph?

Describe integrated systems management, Read the Location Selection through...

Read the Location Selection through Integrated Systems Management article. Define Integrated Systems Management in your own words and discuss the application of the 3 stages of fac

Describe presence of an outside threat correlates, Some people argue that t...

Some people argue that the presence of an outside threat correlates with high degree of team cohesion. Would you agree or disagree?

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