AV City stocks and sells a particular brand of laptop. Itcosts the firm $625 each time it places an order with themanufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500units, with a constant demand rate throughout the year.Orders are received within minutes after placement from alocal warehouse maintained by the manufacturer. The storepolicy is never to have stockouts of the laptops. The storeis open for business every day of the year except ChristmasDay. Determine the following:a. Optimal order quantity per orderb. Minimum total annual inventory costsc. The number of orders per yeard. The time between orders (in working days)
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.
AV City stocks and sells a particular brand of laptop. It
costs the firm $625 each time it places an order with the
manufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500
units, with a constant demand rate throughout the year.
Orders are received within minutes after placement from a
local warehouse maintained by the manufacturer. The store
policy is never to have stockouts of the laptops. The store
is open for business every day of the year except Christmas
Day. Determine the following:
a. Optimal order quantity per order
b. Minimum total annual inventory costs
c. The number of orders per year
d. The time between orders (in working days)
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