OPIM101 – Management Science Pascale Crama Today’s Class Instructor Learning experience Introduction to Quantitative Modeling EOQ model 2 Management Science – OPIM 101 Week 1 Introduction Instructors Main Instructor: Pascale Crama Contact: Email: pcrama@smu.edu.sg Phone: extension 0330 Office: LKCSB 4031 Office hours: on appointment OM experience Project management‚ advertisement scheduling‚ contracting Teaching Assistants: 3 Chuan Dewei: dewei.chuan
Premium Operations research Decision theory Mathematics
000 units‚ annual sales New Credit Policy 3/10‚ net 50 50% of customers under discount $250‚000 annual sales 25‚000 units‚ annual sales Ordering Cost: $100/ order Carrying Cost: $1/ units Average Cost: $6‚ 50/ unit Average Inventory: EOQ/2 Cost of Goods Sold= 65% of Net Sales General and Administrative Expenses= 10% of Net Sales Interest on Increase in Accounts Receivable and Inventory= 12% Taxes= 25% of Before- Tax Income QUESTIONS a. Compute the accounts receivable balance
Premium Generally Accepted Accounting Principles Accounts receivable Balance sheet
Inventory is defined as any stored resource that is used to satisfy a current or future need (Render‚ Stair & Hanna‚ 2012). Many things come to make up inventory a few examples of what make up inventory are finished goods‚ raw materials‚ and work-in-progress. When it comes to a company’s most important and often times most expensive assets you discover inventory makes up as much as 50% of a company’s total invested capital (Render‚ Stair & Hanna‚ 2012). This paper will take a look at the
Premium Marketing Generally Accepted Accounting Principles Management
Inventory Management SANJAY VARDANI 4/7/2010 Accman Institute of Mangement Acknowledgement Letter Dear Sir/Madam‚ Subject: Project on Inventory Management‚ I deeply acknowledge the support of Prof. Subir Guha who initially helped and motivated us to embark on this strenuous .I would like to give thanks to providing me an opportunity to make this project. Name & Title of Authorised Representative: Signature: College Name and Address: Telephone
Premium Inventory Management
000 (Total employee cost) ■ Obsolescence and taxes = $200‚000 ■ $169‚050 + $192‚000 + $200‚000 = $561‚050 2. What is the EOQ and reorder point for Strike Disinfectant given your answer to Question 1? ○ EOQ: ■ D: 151.19 cases (11.63 gallons/4 (gallons per case) x 52) ■ Co: $10 Order cost ■ I: 13.52% ($561‚050/4.15 million) ■ C: $84.20 Cost per case ■ Ch: 11.38 case (84.20 x .1352) 2 ■ EOQ = √(2 x 151.19 x 10)/(11.38 case) √(3023.80/11.38) √(265.71/1775) = 16.30 cases (65.2 gallons) ○ Reorder point:
Premium A Little Bit A Little Bit Longer Time
Is management accounting a critical aid to the Decision Making Process in an organization? The answer undoubtedly is in the affirmative. During the past few decades‚ management accounting practices were conducted across a range of industries in the world. Management accounting can be viewed as a powerful tool for management. However‚ a widespread misconception exits that management accounting is an aid omnipotent. Therefore‚ this essay will focus on investigating the role of management accounting
Premium
takes 5 days for each order of sugar to be filled. 1) Refer to the information above. What is the optimal EOQ? A) 200 bags B) 5000 bags C) 2500 bags D) 100 bags E) 50 bags Answer: E Page Ref: 12-7 Topic: Economic Order Quantity: Determining How Much to Order Difficulty: Moderate AACSB: Analytic Skills 2) Refer to the information above. What is the maximum inventory held in a given EOQ cycle? A) 5000 bags B) 200 bags C) 50 D) 100 bags E) 15 bags Answer: C Page Ref: 12-6 Topic: Economic Order
Premium Inventory Economic order quantity
For each price level ($5.00‚ $4.75‚ etc.) determine the EOQ‚ and the corresponding total annual cost. Sketch the total annual cost as a function of the order quantity. Based on these results‚ identify the optimal ordering policy. 3. Repeat the analysis of (2) above for the incremental unit discount situation described in Table 2. Day 2 4. Consider the make or buy decision for item #4569802 (on page 4). Using the economic order quantity (EOQ) model‚ determine the order quantity (lot size) for each
Premium Inventory Economic order quantity Supply chain management
ECONOMIC ORDER QUANTITY (EOQ MODEL) How much to Order Problem TC = total annual inventory cost D = annual demand (units/year) Q = order quantity (units) K = cost of placing an order or setup cost ($) h = annual inventory carrying cost ($/unit/year) may include: warehousing cost avg rtn for working capital P = price of goods ($/unit) STEP 1: Convert in D‚ h‚ K into same time units (mo‚ yr‚ etc…) STEP 2: Determine EOQ‚ Q* Optimal quantity EOQ = STEP 3: Find
Premium Economic order quantity Inventory
Order Size‚ Transportation Costs‚ and Economic Order Quantity Jerome Benedict 604 488 9691 Prepare answers to the following questions prior to class. In class you will be given time to discuss your findings in small groups. Be prepared to present your findings either individually‚ or as a group‚ to the class. This discussion exercise is worth 2.5% of the overall mark for this module. 1. Is it reasonable to think order sizes are infinitely variable? How does this relate to LTL (less-than-truckload)
Premium Transport Cargo Economic order quantity