An auto industry purchases spark plugs at the rate of Rs.25 per piece. The annual consumption of Spark plug is 18,000 numbers. If the ordering cost is Rs. 250 per order and carrying cost is 25% per annum. What would be the EOQ? If the supplier of spark plugs-offers a discount of 5% for order quantity of 3,000 numbers per order, do you accept the discount offer?

Q: Your company sells ink cartidages at an average rate of 1500/week. Your supplier has guaranteed a 2…

A: Reorder point = Demand during lead time = Average daily demand * Lead time

Q: Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager…

A: a. Economic Order Quantity (EOQ) is an inventory management formula that determines the ideal order…

Q: Explain the one-time purchasing decision and the single-period inventory model

A: A single period inventory model is a professional scenario met by businesses that demand seasonal or…

Q: is the percentage of the billed cost given by a vendor when a stipulated quantity is purchased. 1.…

A: Pricing strategies are an important aspect of business operations, particularly in procurement and…

Q: help me solve this practice problem please

A: Let's take a closer look at the computations. Combination 1: Supplier A's orders placed five times…

Q: Why do some companies still opt for "just-in-time Inventory" strategy despite its disadvantages?

A: Just in time inventory is described as the strategy of inventory management that is similar to the…

Q: Calculate the reorder point

A: Given Data  Demand per week = 800 units Annual demand  =800×52=41600 Ordering cost (S) = $72 Cost…

Q: List and discuss the chief limitations of EOQ theory.

A: The Economic Order Quantity (EOQ) model is a widely used inventory management technique that helps…

Q: a) What is the EOQ for these colourful silk headscarves? b) What is the Average Inventory in RM…

A: Inventory management is an important concept for organizations dealing with products. EOQ is one of…

Q: What are the key objectives of inventory management within a supply chain?

A: Inventory management allows businesses to select which commodities to purchase, in what amount, and…

Q: A company that manufactures cars would use about 50,000 steering wheels per year. Such steering…

A: EOQ is abbreviated as Economic Order Quantity. The ideal order quantity for a corporation is the one…

Q: Your widget factory requires GWium for polishing. GWium is expensive but worth it and a little goes…

A: Given Information: Each widget requires 0.1 ounces of GWium to produce  Supply contract: 10,000…

Q: What are the different types of inventory carrying costs? Are these expenses constant or variable,…

A: Inventory are the material i.e Raw material work in progress finished goods

Q: Discuss the different kinds of costs in carrying inventory and what role the inventory turnover…

A: Inventory management is a very important concept in every organization because it is helpful in…

Q: Determine which delivery alternative would be most economical for 50 boxes of parts. Each box costs…

A: given, most economical = 50 boxes  each box costs = $434 holding cost = 20% assumption = 365

Q: State and explain in brief any five types of inventory on the basis of classification of its types?

A: Goods that are stocked or stored for immediate or near future use by the company or corporation are…

Q: 4. Distinguish between a supplier and a prime vendor. 5. Describe the Farm/School Meals Initiative.

A: A supplier provides goods or services in a transactional manner while a prime vendor is a strategic…

Q: A local distributor for a national tire company expects to sell approximately 200 steel-belted…

A: Given data  Annual demand (D)= 200 units  Annual carrying cost (H)= $20 per tire  Ordering cost (S)…