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.
SAM Technology had AED 640,000,000 of retained earnings on December 31, 2012. The company paid common dividends of AED 30,000,000 in 2012 and had retained earnings of AED 500,000
QUESTION 1 (a) What are the differences between futures and forwards? (b) Clearly explain the following position on options i) Going long on a call option ii) Going lo
Sovereign debt is a debt instrument guaranteed by the government. The other names for sovereign debts are sovereign bonds or government bonds. They are issued in
What are the primary variables being balanced in the EOQ (Economic Order Quantity) inventory model? Explain The primary variables being balanced in the EOQ (Economic Order Quant
State the different accounting policies Different accounting policies which can be adopted will have an influence on the ratios calculated and hence make comparisons more diffi
Previous MOS = 750 - 270 = 480 aircraft; Revised MOS = 750 - 420 = 330 aircraft Explanation that a lower MOS = lower levels of profit and therefore exposes the business to more
Q. Define a currency futures contract? A currency futures contract is a standardised contract for the buying or else selling of a specified quantity of currency. It is traded o
A Company has the following capital structure: Debt: $2,000,000 Preferred: $1,000,000 Common: $4,000,000 Retained Earnings: $3,000,000 The amounts shown gives book values. The m
How are financial trades made on an organized exchange? Every exchange-listed security is traded at a precise location on the trading floor called the post. The trading is mana
Enumerate about the Turnkey operations An illustration of a turnkey business would be a franchise for example immediate brand, systems and product with exclusive territory. A t
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