Evaluate optimal order quantity, Operation Management

Assignment Help:

(a) Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and the final product, and deliver them to customers. The key to a successful supply chain structure and operation depends upon a customer/supplier relationship based on partnership principles. Critically discuss the importance for companies to develop a supply chain strategy.

(b) Leal Communication Ltd stocks and sells Toshiba note-book. It costs the store $400 each time it places an order with the manufacturer. The annual cost of carrying the note-book in inventory is $150. The store manager estimates that the annual demand for such note-book will be 1200 units.

(i) Explain why organisations hold inventory.

(ii) Evaluate optimal order quantity and total annual inventory costs.


Related Discussions:- Evaluate optimal order quantity

Compute quantity is a fractional amount, The Bluegrass Distillery produces ...

The Bluegrass Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 gallons o

Explain company to suspect there is unmet demand, Describe some of the cues...

Describe some of the cues that might cause a company to suspect there is unmet demand for its products or services. How would you design a test to determine whether your suspicions

Explain the basic economic order quantity, The basic Economic Order Quantit...

The basic Economic Order Quantity (EOQ) model can be considered a special case of the Economic Production Quantity (EPQ) model under which of the following condition? Answer The

Introduction of operations strategy, Introduction of Operations Strategy ...

Introduction of Operations Strategy The term strategy, given in the Collins English Dictionary is, 'the art or science of the planning and conduct of a war; generalship; a lon

I want a professional plan for this school project, I need a professional p...

I need a professional plan for this school project on this company. (• A plan of viable business options for "Family Fabrics" • A summation of expected results. Fire destroyed t

Explain computer and software result in increased profits, The chief inform...

The chief information officer recommends that a new computer and software be purchased and installed at a cost of $100,000. This investment will decrease manpower costs by $4 per c

Five focusing steps of theory of constraints, Five Focusing Steps of Theory...

Five Focusing Steps of Theory of Constraints Evaporating clouds  This is a term used to describe a methodology developed by Goldratt to resolve conflicts in a 'win-win' m

Explain market demographics to effectively segment, Measurement of customer...

Measurement of customer engagement through the feedback process helps the organization in all of the following EXCEPT- discover customer perceptions of how well the organization

Explain product management offers a host of dilemmas, Product management of...

Product management offers a host of dilemmas and challenges to marketers. What products will give us a competitive advantage? Are the new products we are considering in keeping wit

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