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Explain the facts on which Economic Order Quantity is depend
Economic Order Quantity depends on two costs:
(i) Inventory procurement costs which consists of expenditure connected with
* Obtaining quotations
* Processing Purchase Requisitions
* Expediting and Following up Purchase order
* Receiving materials and after that inspecting them Processing Invoices Procurement costs of seller reduce as the order quantity raises.
(ii) Carrying Costs that vary with quantity ordered contains
* Interest on capital investment
* Cost of storage services
* Cost including deterioration and obsolescence
* Cost of insurance and property tax etc.
Carrying costs are approximately directly proportional to the order size or lot size quantity.
Explain the basic idea underlying the contingency view. How would you go about identifying key contingencies facing an organization?
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Job Alpha Beta R 8 7 S 9 4 T 7 9 U 3 4 V 12 5
Outline the considerations for choice of location and the criteria for good layout?
Discuss Michael Porter's Competitive Forces Model. Provide examples to illustrate your points.
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