O = d(01 + LT) + z0gVOI + LT - A (13–16)
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.
Fixed-order-interval. This type of problem can be recognized when an order interval is given (e.g.,
inventory is ordered every 10 days) along with the demand rate, lead time, and quantity on hand at
order time. Use Formula 13–16 to find the optimal order size.
A lab orders a number of chemicals from the same supplier every 30 days. Lead time is five days.
The assistant manager of the lab must determine how much of one of these chemicals to order. A
check of stock revealed that eleven 25-milliliter (ml) jars are on hand. Daily usage of the chemical is
approximately normal with a mean of 15.2 ml per day and a standard deviation of 1.6 ml per day. The
desired service level for this chemical is 95 percent.
a. How many jars of the chemical should be ordered?
b. What is the average amount of safety stock of the chemical?
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