a) Any firm will hold stocks of many types of raw material or finished product. Discuss...

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a) Any firm will hold stocks of many types of raw material or finished product. Discuss how a Pareto Analysis can be used to design their stock replenishment policies for their raw materials and bought-in components. (8 marks) b) For the most important "A" lines the firm wants to determine the reorder quantity so that the associated annual cost will be minimised. Derive the Economic Order Quantity using the notation k Delivery cost per delivery Yearly demand Stock holding cost per item held in stock for a year Unit price D h Listing all assumptions made to enable this analysis. (5 marks) c) N&F need to determine their best ordering quantity for a particular item. This item is perishable and has to be kept in a cold store, consequently the firm needs to determine the number of cold stores to build as well as to determine the order quantity (to minimise costs). Determine the order quantity and the number of cold stores given the data:- k £100 10000 h £2 P £10 a cold store can hold 300 items and costs £200 a year to operate. a) Any firm will hold stocks of many types of raw material or finished product. Discuss how a Pareto Analysis can be used to design their stock replenishment policies for their raw materials and bought-in components. (8 marks) b) For the most important "A" lines the firm wants to determine the reorder quantity so that the associated annual cost will be minimised. Derive the Economic Order Quantity using the notation k Delivery cost per delivery Yearly demand Stock holding cost per item held in stock for a year Unit price D h Listing all assumptions made to enable this analysis. (5 marks) c) N&F need to determine their best ordering quantity for a particular item. This item is perishable and has to be kept in a cold store, consequently the firm needs to determine the number of cold stores to build as well as to determine the order quantity (to minimise costs). Determine the order quantity and the number of cold stores given the data:- k £100 10000 h £2 P £10 a cold store can hold 300 items and costs £200 a year to operate.

Answer rating: 100% (QA)

a Plotting the value for every type of item we get to know the critical items and the noncritical it... View the full answer