Explain the facts on which economic order quantity is depend, Operation Management

Assignment Help:

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.


Related Discussions:- Explain the facts on which economic order quantity is depend

Describe in terms of developing a project plan, In terms of developing a pr...

In terms of developing a project plan, specifically recommend how this resource could expedite that process.

Describe how this affect the subsequent bid, Lamda Computer Products compet...

Lamda Computer Products competed for and won a contract to produce tow prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits

Compute arriving patients can receive treatment immediately, The emergency ...

The emergency room serves patients who arrive according to a Poisson distribution at the rate of 9 per hour. Treatment takes an average of 6 minutes and the treatment times can be

Describe how it relates to this week''s topic, • This assignment is to take...

• This assignment is to take into consideration doing business in China. You are an American company wanting to expand into China. Your management has asked you to do a PowerPoint

General model of the operations function, General Model of the Operations F...

General Model of the Operations Function This figure illustrates the basic concept of the operations function. Firstly inputs are transformed (converted) to outputs with the m

Memorandum, location analysis on expanding manufacturing plant

location analysis on expanding manufacturing plant

Define what ethical implications does organizational reality, You must pond...

You must ponder on an organizations responsibility to its workers whose skills have become obsolete. Considering the rapid pace of technological change, workers jobs will (and must

Explain lead directly to performance but is moderated, Stephanie the CEO of...

Stephanie the CEO of XYZ Inc., is trying to increase the level of effort and therefore performance in her company. Based on expectancy theory on motivation she knows that effort do

Explain work measurement, Explain Work Measurement. It is defined as th...

Explain Work Measurement. It is defined as the application of techniques designed to establish the time for a qualified worker to carry out a given job at a defined level of pe

What is utility of computer- wide systems, Q. What is utility of computer- ...

Q. What is utility of computer- wide systems to manufacturing operations? Enterprise-wide systems (ERP systems) also considered as enterprise computing or enterprise resource p

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