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

Differences between a team and a work group, Question: (a) "Teams defin...

Question: (a) "Teams definitely are forms of work groups, but not all work groups are teams". Work groups function on three levels: Dependent level, Independent level and Inter

Compute the average number of customers waiting at lhs, During busy periods...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

Explain how much should the father deposit, On the day his son was born, a ...

On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th b

Explain cost-minimizing production schedule, A motorcycle manufacturer is d...

A motorcycle manufacturer is determining its production schedule for the next 6 months. The cost of manufacturing a motorcycle during each month is Month 1 Month 2 Month 3 Month 4

Explain charlotte inventory levels, L. Houts Plastics is a large manufactur...

L. Houts Plastics is a large manufacturer of injection moulded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the informat

Explain linking purchasing to the corporate strategy, Q. Explain linking pu...

Q. Explain linking purchasing to the corporate strategy? Linking purchasing to the corporate strategy Wording of Professor Paul Cousin about, supply chain management is as r

Find what is the maximum profit, The Outdoor Furniture Corporation manufact...

The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: labor and redwood. A linear pro

Describe when stakeholder identification occurs, Explain when stakeholder i...

Explain when stakeholder identification occurs and explain the importance of stakeholder analysis

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