Technomach Sdn. Bhd. is a company that produces low-end mobiles devices. The demand for this device is expected to be increased in 2021 due to the country to implement the multiple phases of the Movement Control Order (MCO) that caused many people to work and study at home. Currently, the company policy has set the ordering quantity with 600 units per order. The monthly demand for this device is 600 units per month. The holding cost per device is RM0.75 per unit. The ordering cost is RM10 per order and expected to receive order in 3 days from the ordering date. The company operates 240 days a year. A) Based on the current practice, determine whether the ordering quantity is economical or not. If not economical, suggest the ordering economical quantity for this company. b) Provide a suitable calculation to justify your answer. Determine how many cost-saving if the company place the order using the economical quantity C) Construct two inventory cycles showing the Economic Order Quantity, time between orders, reorder point and lead time.
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.
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