A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a normal distribution with a standard deviation of 75 copies. Using an appropriate Fixed Order Quantity system model compute the following: (a) Length of production run (two decimal points) (b) Maximum inventory (use the closest Z value, answer whole number) (c) The reorder point (whole number) (d) Total annual stocking cost (two decimal points with no commas)
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.
A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a
Using an appropriate Fixed Order Quantity system model compute the following:
(a) Length of production run (two decimal points)
(b) Maximum inventory (use the closest Z value, answer whole number)
(c) The reorder point (whole number)
(d) Total annual stocking cost (two decimal points with no commas)
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