better it is but there is a limit to this. Abnormally high value of current ratio may indicate existence of idle or underutilized resources in the company. 2. Terms of 2/10‚ n/30 means that the supplier will provide 10% of the order within 2 days and the balance of the order will be delivered in 30 days. FALSE – The figures 2/10 means that the customer will obtain a 2% discount if payment will be made within 10 days (collection period)‚ and will not obtain any percentage of discount if payments will
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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 but
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Develop an ABC classification for these 10 items. 2. A particular raw material is available to a company at three different prices‚ depending on the size of the order: The cost to place an order is $40. Annual demand is 3‚000 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time? 3. Sally’s Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for
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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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critical design component of the collection. All other garments are fashioned to match the parkas ’ style and color. Main Issues Short Term-Forecasting (Supply and Demand) • In November 1992‚ production quantities for each skiwear item offered in the line (1993-1994) are required. No indications about current 1992-1993 line available. Inaccurate forecasts of retailer demand are a problem. Production supply and customer demand differ. Forecasting becomes difficult
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Managing Business Process Flows: Ch 6 Supply Chain Management Managing the Supply Chain Key to matching demand with supply Managing materials waiting time Cost and Benefits of inventory Inventory Analysis: Economies of Scale (Ch 6) Palu Gear: Inventory management of a retailer: EOQ + ROP Levers for improvement Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall 1 Key Financial Indicators of Supply Chain Performance Return on Assets Net Present Value … …
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Sport Obermeyer case (Venugopal Vinjamuri and Kailash Kothari) In order to determine the quantity of each product that should be purchased at the outset so as to fill half of the total forecasted volume (10‚000 units)‚ we need to calculate the purchase price per product (something that isn’t provided in the case) and also the salvage price per product. Let’s start with the cost information of the Rococo Parka. The cost to produce one piece in Hong Kong is $60.08 while the cost in China is $51.92
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Delivery Charges Production Cost Annual Holding Cost per Unit S C h $ $ Weekly Usage (gallons) Annual Demand Order Quantity D $ $ Annual Holding Cost per Unit per year Number of Orders Per Year Average Inventory Annual Ordering Cost Annual Holding Cost EOQ Q H = h*C D/Q Q/2 (D/Q)*S (Q/2)*H ??? = 35.00 1.20 35% 250.00 13‚000.00 2500 $ $ $ $ 2 ∗ ? ∗ ??? ??? 0.42 5.20 1250 182.00 525.00 $ 1‚472.00 .06473697917 = 6.474% a. $ $ 525.00 182.00 AHC AOC $ 707.00 b. $ $ 105.00 910.00
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chemical that can be mixed with air to create an efficient thermal acoustic insulator. Jacobs Industries produces chemicals in batches and loads the drums to be shipped by truck to the warehouse. If Jacobs Industries cannot fill the order within 24 hours of receiving the order then the business is lost. The chemical is packed and shipped in drums costing $1450 apiece. The company has been running for two years (730 days) and has shown a seasonal trend in sales. In two years’ time a new foam technology
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part of our analysis involved deriving an order policy from the forecasts provided in the sample problem. We solved this problem using simplifying assumptions and then relaxing some of those assumptions. Our initial assumption was that there was no minimum order quantity. We decided that risk would be minimized by producing the smallest allowable amount during the first production run due to the lack of information. Thus‚ we calibrated our order quantity formulas to sum to 10‚000 units. We wanted
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