Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Theories Expert

problem1. describe how carrying cost affects inventory in any organisation. Use exs to illustrate your answer.
 
problem2. An organisation is planning to introduce an inventory system to manage the annual demand for stationary namely, reams of A4 paper. The daily usage rate for reams of A4 paper appears to be distributed, with mean 25 and standard deviation 3. Once an order is placed, it takes 7 working days before delivery is made and the organisation operates throughout the year. The cost of a ream of A4 paper is valued at approximately Rs12 and the organisation estimates that the carrying cost is 25% of the unit cost. The operations manager has made a study of the costs involved in placing and processing an order from the supplier, and concluded that the average ordering cost is Rs25 per order.

(a) Under the above assumptions, what is the economic order quantity?

(b) What is the expected number of orders to be placed each year?

(c) What is the total annual cost associated with your recommended EOQ?

(d) The organisation is concerned about stockouts of such a basic item and, thus, desires a 97% service level. What safety stock should the organisation maintain using the above information?

(e) find out the reorder point to be used.

(f) Suppose that an ordering cost of only Rs15 had been used instead of Rs25.

(i) What is the order size now?

(ii) How would the total cost have changed?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M95754

Have any Question? 


Related Questions in Management Theories

Research and find a cool supply chain technology that is

Research and find a cool supply chain technology that is being used to insure safe and healthy foodstuffs within a retail business of our choice. What federal regulations must that followed to insure such safe and health ...

Requirement-each week you are required to engage with the

REQUIREMENT- Each week, you are required to engage with the material by writing a short discussion of how the material relates to the topic(s) of this subject and how it relates to your own personal experience. You creat ...

Questions1 what would be the results of an effective

Questions: 1. What would be the results of an effective security investment? How would you measure that? 2. What role should the public play in risk management? 3. What role does a risk communication strategy play in ris ...

Emily bicchieri is a newly elected city council member in

Emily Bicchieri is a newly elected city council member in the City of Kelsey. As part of her orientation to her new position, Ms. Bicchieri wants to learn the roles and functions of the people she must rely on for inform ...

Which information attribute is often of great value for

Which information attribute is often of great value for networking equipment when Dynamic Host Configuration Protocol (DHCP) is not used? When you document procedures, why is it useful to know where the electronic versio ...

What is the difference between an assets ability to

What is the difference between an asset's ability to generate revenue and its ability to generate profit? How many categories should a data classification scheme include? Why? How many threat categories are listed in thi ...

What are the types of plans how are they distinguished from

What are the types of plans? How are they distinguished from one another? Do you think plans with incremental objectives are more effective than those that contain stretch goals? Why or why not? What role should ethics p ...

Discussion topic 1 7-step planfrom this units reading

Discussion Topic 1: 7-step Plan From this unit's Reading, discuss how you might use Ryan's 7-step plan to bring about a specific change in your organization. Discussion Topic 2: Organizational Culture Based on the articl ...

Business expansion and sustainabilitywrite a six to seven

Business Expansion and Sustainability Write a six to seven (6-7) page paper in which you: 1. Identify three (3) job requirements (e.g., needed certifications, previous work experience, external influences, etc.) that cou ...

What is due care why would an organization want to make

What is due care? Why would an organization want to make sure it exercises due care in its usual course of operations? What should an organization do to deter someone from violating policy or committing a crime? How does ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen