Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) 115,200 Purchase price per unit $ 300 Carrying/Holding costs per unit $ 8 Cost per order $ 200 Required: a)Fill the blanks in the following table using the above data. b)Determine the EOQ using the equation method and calculate the holding, ordering cost & their total cost at the EOQ level and also plot the graph at the EOQ level showing the numbers . c)Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. No. of orders 1 10 20 30 90 120 Order size Average stock Carrying (Holding) costs Order costs Total costs
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.
Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information.
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Annual demand (units) |
115,200 |
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Purchase price per unit |
$ 300 |
|
Carrying/Holding costs per unit |
$ 8 |
|
Cost per order |
$ 200 |
Required:
a)Fill the blanks in the following table using the above data.
b)Determine the EOQ using the equation method and calculate the holding, ordering cost & their total cost at the EOQ level and also plot the graph at the EOQ level showing the numbers .
c)Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings.
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No. of orders |
1 |
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30 |
90 |
120 |
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Order size |
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Average stock |
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Carrying (Holding) costs |
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Order costs |
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Total costs |
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