Operations Manager of PT Radio Gaga is calculating production costs a telecommunication radio taking into account the following needs: i. Week 1 : 20 units ii. Week 2 : 36 units iii. Week 3 : 46 units iv. Week 4 : 45 units v. Week 5 : 20 units vi. Week 6 : 26 units It is known that there is inventory from the previous week as many as 20 units. Assuming 52 week per year, lead time booking for 1 week, setup cost of $40 and holding cost of $0.75 per week, you are required to assist the Operations Manager of PT Radio Gaga to calculate the estimated production cost as follows: a. Calculate EoQ b. Create a 6-week MRP Lot Sizing Table with EoQ method c. Calculate Total Production Cost using EoQ method
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.
Operations Manager of PT Radio Gaga is calculating production costs
a telecommunication radio taking into account the following needs:
i. Week 1 : 20 units
ii. Week 2 : 36 units
iii. Week 3 : 46 units
iv. Week 4 : 45 units
v. Week 5 : 20 units
vi. Week 6 : 26 units
It is known that there is inventory from the previous week as many as 20 units. Assuming 52
week per year, lead time booking for 1 week, setup cost of $40 and
holding cost of $0.75 per week, you are required to assist the Operations Manager of PT
Radio Gaga to calculate the estimated production cost as follows:
a. Calculate EoQ
b. Create a 6-week MRP Lot Sizing Table with EoQ method
c. Calculate Total Production Cost using EoQ method
d. Create a 6-week MRP Lot Sizing Table using the Lot method
for Lot
e. Calculate Total Production cost by using Lot for Lot method
F. Which method will PT Radio Gaga's Operations Manager take?
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