Wednesday, 12 August 2015

material




                                   CHAPTER 1.MATERIAL
                                  (ALLOCATE DAILY 2HRS FOR THIS SUBJ)

MOST IMP Topics to be covered:-

a. theory questions .

1) What is MRN,BOM.
2) what is BIN card.
3) what is ABC analysis and advantages.
4) What is stores ledger.
5) perpetual inventory records.
6) what is EOQ , ROQ.

B. SUMS

1. EOQ

a. simple EOQ  calculations (using wilson’s formula & using carrying cost)

b. and with discount

1. The average annual consumption of a material is 18,250 units at a price of Rs. 36.50 per unit. 
The storage cost is 20% on an average inventory and the cost of placing an order is Rs.50. 
how much quantity is to be purchased at a Time.

Sol.          EOQ = 2AO/C       (using Wilsons formula )

                  Here A = Annual Requirement of Raw Material*
                            O = Ordering cost per order.
                             C = Carrying cost p.u.*
A =18,250 units( given directly some time’s he gives demand or production then we have to calculate)
O = Rs.50.
C = 20% on 36.5 i.e.  Rs.7.3 p.u.( not given directly then only we have to calculate)                          by solving we get EOQ = 500 Units.

2. Compute EOQ where Annual Requirement = 30,000 kgs, ordering cost = Rs.20 per order,
    Carrying Cost = Rs.10 per unit p.a.

Ans .here every this is given directly if you know the formula you can solve it.
         EOQ = 346.41 kgs.

3. A firm produces a product, which has a monthly demand of 2000 units, the product requires a special component, which is purchased at Rs.2 p.u.  for every finished product two unit of special component is required. The ordering Cost is Rs.15 per order and the Holding Cost is 20% p.a.


Here  A = 2000*12*2 =48,000 units.
           O = Rs.15.
            C = Rs.2*20% = .40 p.u.
    
 By solving we get EOQ = 1897.36 means we have to take 1898

                                           ( 3 SUMS IN  EACH POST)



       





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