Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain about economic order quantity?
The economic order quantity (EOQ) model is basis on a cost function for holding inventory which has two terms: holding costs as well as ordering costs. Through the EOQ the total cost of having inventory is minimised when holding cost is equal to ordering cost. The EOQ model presumes certain knowledge of the variables on which it depends and for this reason is called a deterministic model. Demand for inventory holding cost per unit per year as well as order cost are assumed to be certain and constant for the period under consideration. In practice demand is probable to be variable or irregular and costs will not remain constant. The EOQ model as well ignores the cost of running out of inventory (stockouts). This has reason some to suggest that the EOQ model has little to recommend it as a practical model for the management of inventory.
The model was developed on the foundation of zero lead time and no buffer stock but these aren't difficulties that prevent the practical application of the EOQ model. As our previous analysis has shown the EOQ model is able to be used in circumstances where buffer stock exists and provided that lead time is known with certainty it can be ignored.
The EOQ model as well serves a useful purpose in directing attention towards the costs that arise from holding inventory. If these costs are able to be reduced working capital tied up in inventory is able to be reduced and overall profitability can be increased.
If uncertainty subsist in terms of demand or lead time, a more complex inventory management model using probabilities (a stochastic model) such as the Miller-Orr model can be used. This model computes control limits that give guidance as to when an order must be placed.
company A is expecting to sell 10,000 cases in july, 20,000 cases in Augest, and 30,000 in september of year 2. selling price per caseis 30%.All sales are on account. The sales are
Question: Susan started her current job at age 30, with the normal retirement age at 60. The remuneration package of her employment includes the following benefits on top of he
Calculate the Future Value of an Annuity: Annuity is stated as periodic payment every period for a number of periods. This periodic payment is the same each year only then it c
Explain contingent exposure and define the advantages of using currency options to manage this type of currency exposure. Answer: Companies may come across a state where they m
Portfolio Management: Project Portfolio Management (PPM) is the centralized management of processes, technologies and methods used by project management offices (PMOs) and pro
Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a
Explain about the term investment intermediaries. Investment intermediaries: Investment intermediaries contain finance companies, mutual funds and investment banks and se
1. Analyse the company's capital structure and critically assess different types of financing options available to the company. Calculate the cost of these different types of finan
TYPES OF DIVIDEND POLICY 1. Regular dividend policy: Payment of dividend at standard rate is known as regular dividend policy. 2. Stable dividend policy: Payment of fix
RELATIONSHIP OF FINANCIAL MANAGEMENT WITH OTHER BUSINESS FUNCTIONS
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd