What is the average inventory in Indonesia? b. What is the average inventory during shipping? c. What is the average inventory in Germany? d. What is the inventory holding cost in Indonesia? Per year e. What is the inventory holding cost during transportation? Per year f. What is the inventory holding cost in Germany? Per year g. What is the shipping cost? Per year h. What is the total cost, considering the total inventory carrying cost and shipping? Per year
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.
2. Perlor, a musical instruments manufacturer in Indonesia, make and sell guitars. Let’s assume they operate at maximum capacity, making guitars seven days a week, 52 weeks per year, with a production result of 100 guitars per week. Perlor ship all guitars they can produce as soon as they can, keeping no safety stock. The guitars are shipped to Germany, where a wholesaler distributes them to all over Europe. Sales in units is the same as the production in Indonesia. The value of a guitar leaving production is €200. The cost of capital is estimated to 15%. The cost for holding inventory is 10%. Shipments dispatch every eight weeks. The shipping time is six weeks, and the cost is €5/unit. In Germany, the wholesaler keeps a safety stock corresponding to a week of sales.
a. What is the average inventory in Indonesia?
b. What is the average inventory during shipping?
c. What is the average inventory in Germany?
d. What is the inventory holding cost in Indonesia? Per year
e. What is the inventory holding cost during transportation? Per year
f. What is the inventory holding cost in Germany? Per year
g. What is the shipping cost? Per year
h. What is the total cost, considering the total inventory carrying cost and shipping? Per year
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
