Dream Sdn Bhd is a manufacturer of bed flip chair which is located at Bandar Seremban,...
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Dream Sdn Bhd is a manufacturer of bed flip chair which is located at Bandar Seremban, N. Sembilan. One of the components used in making the flip chair is plywood block board which cost RM50 per meter. The annual demand of Dream flip chair is 2,000 units in which one unit requires 6 meter of plywood block board. The company decided to maintain the number of orders to only 4 times per annum to minimize its total cost. Other costs are as follows: a. The administration and general expenses incurred in ordering the plywood block board is RM7.00 and RM3.00 respectively. b. The insurance charge is RM4.00 per unit and the interest charges are estimated at 5% of the material's cost. c. The purchasing department estimates that utilities bill per order is RM20. d. A supplier of plywood block board is charging a transportation cost of RM200 per delivery. The company stores the plywood block board in proper warehouse to avoid any loss at a cost of RM5.00 per unit. Required: 1. Determine the annual demand, the ordering cost per order and the holding cost per unit ii. The EOQ using formula. ill. The total cost using EOQ and current policy. iv. The cost saving if (any) C Explain five benefits of Just in Time system in manufacturing company. (5 Marks) Dream Sdn Bhd is a manufacturer of bed flip chair which is located at Bandar Seremban, N. Sembilan. One of the components used in making the flip chair is plywood block board which cost RM50 per meter. The annual demand of Dream flip chair is 2,000 units in which one unit requires 6 meter of plywood block board. The company decided to maintain the number of orders to only 4 times per annum to minimize its total cost. Other costs are as follows: a. The administration and general expenses incurred in ordering the plywood block board is RM7.00 and RM3.00 respectively. b. The insurance charge is RM4.00 per unit and the interest charges are estimated at 5% of the material's cost. c. The purchasing department estimates that utilities bill per order is RM20. d. A supplier of plywood block board is charging a transportation cost of RM200 per delivery. The company stores the plywood block board in proper warehouse to avoid any loss at a cost of RM5.00 per unit. Required: 1. Determine the annual demand, the ordering cost per order and the holding cost per unit ii. The EOQ using formula. ill. The total cost using EOQ and current policy. iv. The cost saving if (any) C Explain five benefits of Just in Time system in manufacturing company. (5 Marks)
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
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