HAL Ltd. produces a line of high-capacity disk drives for mainframe computers.The housings for the drives are produced in Hamilton, Ontario, and shipped tothe main plant in Toronto. HAL uses the drive housings at a fairly steady rate of 720per year. Suppose that the housings are shipped in trucks that can hold 40 housingsat one time. It is estimated that the fixed cost of loading the housings onto the truckand unloading them on the other end is $300 for shipments of 120 or fewer housings(i.e., three or fewer truckloads). Each trip made by a single truck costs the company$160 in driver time, gasoline, oil, insurance, and wear and tear on the truck.a. Compute the annual costs of transportation and loading and unloadingthe housings for the following policies: (1) shipping one truck per week,(2) shipping one full truckload as often as needed, and (3) shipping three fulltruckloads as often as needed.b. For what reasons might the policy in part (a) with the highest annual cost bemore desirable from a systems point of view than the policy having the lowestannual 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.
HAL Ltd. produces a line of high-capacity disk drives for mainframe computers.
The housings for the drives are produced in Hamilton, Ontario, and shipped to
the main plant in Toronto. HAL uses the drive housings at a fairly steady rate of 720
per year. Suppose that the housings are shipped in trucks that can hold 40 housings
at one time. It is estimated that the fixed cost of loading the housings onto the truck
and unloading them on the other end is $300 for shipments of 120 or fewer housings
(i.e., three or fewer truckloads). Each trip made by a single truck costs the company
$160 in driver time, gasoline, oil, insurance, and wear and tear on the truck.
a. Compute the annual costs of transportation and loading and unloading
the housings for the following policies: (1) shipping one truck per week,
(2) shipping one full truckload as often as needed, and (3) shipping three full
truckloads as often as needed.
b. For what reasons might the policy in part (a) with the highest annual cost be
more desirable from a systems point of view than the policy having the lowest
annual cost?
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