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Graded Discussion Board# 01 Cost and Management accounting (mgt402) opened on November 17, 2015 last date will be November 20, 2015.

GDB #1 Dated: Nov 16, 15

Important announcement

Graded Discussion Board

Cost and Management accounting (mgt402)

 

Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on November 17, 2015 for discussion and last date for posting your discussion will be November 20, 2015.

 

Topic/Area for Discussion

 “Control Over Material”

 

This Graded Discussion Board will cover Audio/Video lessons #9.

 

Learning Objectives: The students are expected to learn and apply the economic order quantity model in different situations.

Case

Raza and Hamza were the famous entrepreneurs of Lahore due to their retailing skills in the business of instant geyser and imported refrigerators.  As winter starts, they both purchase instant geyser from Rehman Manufactures to sell at their showrooms. Raza knows that order setup cost with Rehman Manufactures is Rs. 200 and the annual inventory holding cost is Rs. 400. Raza expects that Hamza has the same cost figure. Raza has accidently learned that Hamza  is ordering  10 instant geysers every time he orders .

Requirement

  1. Show how Raza can use this information to deduce the demand that Hamza face, by showing demand and its formula.
  2. Explain why competitor would need to know each other’s demand and mention from which perspective party it helps the retailers.

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Replies to This Discussion

Chanda sis kindly add GDB Q in discussion..

otty  kino Ma'am :) 

Learning Objectives: The students are expected to learn and apply the economic order quantity model in different situations.

Case

Raza and Hamza were the famous entrepreneurs of Lahore due to their retailing skills in the business of instant geyser and imported refrigerators. As winter starts, they both purchase instant geyser from Rehman Manufactures to sell at their showrooms. Raza knows that order setup cost with Rehman Manufactures is Rs. 200 and the annual inventory holding cost is Rs. 400. Raza expects that Hamza has the same cost figure. Raza has accidently learned that Hamza is ordering 10 instant geysers every time he orders .

Requirement

1. Show how Raza can use this information to deduce the demand that Hamza face, by showing demand and its formula.
2. Explain why competitor would need to know each other’s demand and mention from which perspective party it helps the retailers.

solution ? :(

Learning Objectives: The students are expected to learn and apply the economic order quantity model in different situations.

Case

Raza and Hamza were the famous entrepreneurs of Lahore due to their retailing skills in the business of instant geyser and imported refrigerators.  As winter starts, they both purchase instant geyser from Rehman Manufactures to sell at their showrooms. Raza knows that order setup cost with Rehman Manufactures is Rs. 200 and the annual inventory holding cost is Rs. 400. Raza expects that Hamza has the same cost figure. Raza has accidently learned that Hamza  is ordering  10 instant geysers every time he orders .

Requirement

  1. Show how Raza can use this information to deduce the demand that Hamza face, by showing demand and its formula.
  2. Explain why competitor would need to know each other’s demand and mention from which perspective party it helps the retailers.

GDB ki discussion b post kr den naaaa...

Sufyan sir kr di add :)

best of luck 

Basing on my experience my comments for this GDB are as under:

Formula of EOQ will be used. Based on the available information from the scenario and from the business experience of Mr. Raza, he should be able to deduce the fact that why Mr. Hamza is ordering/placing demand of 10 instant geysers every time. This is the most economical demand order for his business and in this way he must be earning more profits. 

I have failed to understand second part

Explain why competitor would need to know each other’s demand and mention from which perspective party it helps the retailers.

What the instructor wants to ask????????????

plz give proper argument... i need the solution of this gdb... plz

Kya baat hey.

Discuss karna nahin and plz give proper argument... i need the solution of this gdb... plz

Arooj Fatima Sis, plz discuss bcz with discussion we will be able to arrive at better solution of this GDB.

I'm also trying to solve the second part. I'll let u know about second part tomorrow if i find it.

Can u tell me if I'm right about the first part that EOQ = 10, OC = 200, Carrying cost per unit = 400. By using this info we have to find the annual demand that Hamza face, that is ARU (annually required units) which is 100. Is this answer correct?

we can use the EOQ formula and table both.

 

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