determine the minimum total annual inventory cost
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
1. Padilla Electronics stocks and sells a particular brand of microcomputer. It costs the firm $450 each
time it places an order with the manufacturer for the microcomputers. The cost of carrying one
microcomputer in inventory for a year is $170. The store manager estimates that total annual demand
for the computers will be 1,200 units, with a constant demand rate throughout the year. Orders are
received within the minutes after placement from a local warehouse maintained by the manufacturer.
The store policy is never to have stock outs of the microcomputers. The store is open for business
everyday of the rear except Christmas day.
In reference to problem no. 1, determine the minimum total annual inventory cost
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