(4)Interval between orders: T=QD=160002000=8days (5) Reorder point: DL=2000×5=10000units d. Assuming that we get replenishment of 8000 pounds of flour on Monday and Tuesday respectively‚ the bakery will consume the first 8000 pounds from Monday till Thursday‚ and next 8000 pounds from Friday. However‚ the flour would be expired after 7 days‚ in this case on next Tuesday; while we only consume 4000 pounds before next Tuesday. Therefore‚ the maximum economic lot size under this
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balance between them Flexibility is important in balancing the cost and service Chapter 2 Physical Distribution Component of Physical Distribution 1. 2. 3. 4. 5. Order Processing Transportation Warehousing Material Handling Inventory Management and Control Chapter 2 Physical Distribution Order Processing a. b. c. d. e. f. Verifying customers’ credibility Checking for any outstanding payment Monitoring stock level Preparing invoice Arranging transporter Sending
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for purchase to pass on to the supplier’s customers. EOQ - Economic Order Quantity EOQ is basically an equation used to determine inventory stock. It figures the ideal quantity to order that a particular supplier should maintain in warehouse‚ determined by a consistent cost for production‚ demand‚ etc. It basically figures out the best numbers for a supplier to produce in the chain of supply and demand in order to make a profit. Its purpose is to help maintain a consistent inventory
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net requirements for one or more weeks The basic trade-off involves the elimination of one or more setups at the expense of carrying inventory longer Lot sizing problem is basically one of converting requirements into a series of replenishment orders Lot sizing problem generally considered in a local level; that is‚ only in terms of the one part and not its components Characteristics of Net Requirements Demand • • • • • Net requirement does not satisfy the independent demand assumption
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retailer and a single wholesaler in a two-period newsboy problem. Two models are discussed‚ a single-buying-opportunity model and a two-buying-opportunity model. We discuss how the revenue sharing ratio and the wholesale prices are to be determined in order to achieve channel coordination and a win-win outcome. We find that the wholesale prices are set to be lower than the retail prices and the optimal revenue sharing ratio is linearly increasing in the wholesale prices. The proposed revenue sharing contract
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the cost of capital and estimate the cost of placing an order. Assume that the annual inventory cost of a unit is given by‚ CH = iCI‚ where i is the cost of capital and CI‚ the unit cost of the item. 2. Consider the connector data and the all unit price structure described in Table 1. For each price level ($5.00‚ $4.75‚ etc.) determine the EOQ‚ and the corresponding total annual cost. Sketch the total annual cost as a function of the order quantity. Based on these results‚ identify the optimal ordering
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estimated to be 8% per annum. The cost of capital is 10% per annum. The ordering cost is $40 per order. It is also estimated that the weekly demand will have a normal distribution with a mean of 700 and standard deviation of 100. The lead-time to procure the toys from Hyderabad‚ India is guaranteed to be exactly 9 weeks if the shipment is by sea with a unit transportation cost of 5 cents. a) Find the economic order quantity (EOQ) and compute the total cost per year including the purchase cost @$18/furby
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Mirage Electronics Pty Ltd estimates in the first year‚ the company would have a sale of $694‚925 and a net profit of $8‚115. As the business is newly established with no reputation in the market‚ not every clothing chain will be willing to spend a large amount of money on Reflections. Therefore‚ in the worst-case scenario‚ the business projected that only 5 clothing chains will purchase our product as a trial in Queensland stores. The price set previously in the marketing plan (3.2.3) states that
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NICMAR- SODE PGP-CM - MODULE NO: 11 MATERIALS AND EQUIPMENT MANAGEMENT (COURSE CODE: NCP 24/25) PREPARED & SUBMITTED BY: PRASHANT MATHUR REG NO: 213-12-11-11933-2152 ASSIGNMENT Your company has been awarded a contract of developing and constructing a new International Airport 30KM away from a city. You have been appointed as Planning Engineer (Materials and Equipment). Project is to implement in phases. In Phase I‚ one strip of landing of 100m width is to be constructed in
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Economic Order Quantity vs. Just-in-time Inventory Models Bettina Bradshaw Susan Day Tameka S. Levy Accounting April 20‚ 2011 There are several models that have been developed to deal with the trade-off between ordering and carrying costs of inventory. The two that will be discussed is the Economic Order Quantity (EOQ) model and the Just-in-time (JIT) model. First‚ the history and definition of the theories will be discussed. Secondly‚ there will be a comparison of these two models presented
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