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# MGT613 - Production / Operations Management Assignment 2

Assignment # 02

production/operations management (mgt613)

Marks: 10

Topic: Inventory Management

Objective: The objective of the assignment is to numerically perform the concept of different types of inventory management systems.

Case:

Abacus IT solution providers is located in the Business Centre of down Town. Abacus is considered the Giant retailer of IT products and has an estimated local market share of 55%. It offers comparatively lower prices than other vendors due to its outsized operations and economies of scale. Abacus deals with large, medium to small corporations as well as household clienteles and offers services including hardware, software, assembling and selling of IT products. Two of its “BEST” selling products to big corporations are Laser Inkjet Printers and Ink Toner/ Cartridge which are complementary goods. The monthly purchase of printer is 500 at a price of Rs. 5000/ unit with ordering cost and annual carrying cost Rs. 500 and Rs. 1000 respectively. The monthly purchase of Refilling Toner/ Cartridge is 250 at a price of Rs. 1000 per cartridge with ordering cost and annual carrying cost Rs. 500 and Rs. 750 respectively.

Questions:

1. Calculate the optimal quantity to be ordered for both of the products.

2. Compute total annual ordering and carrying cost of inventory for both products.

Note:

The answer should be in mathematical form only and doesn’t need any theory. But it should also include formulas.

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Important:

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Dear students!

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### Replies to This Discussion

ok Teacher, will solve the assignment and will update the solution here

yeh asigment kis chapter sy related ha??

This is related to lecture 32 & 33, Topic EOQ....

Hi,

Do we need to calculate below requirements individualy or both together means separate calculations for printers and separate for tonner/cartridge. please help anybody...?

Questions:

1. Calculate the optimal quantity to be ordered for both of the products.

2. Compute total annual ordering and carrying cost of inventory for both products.

please koi discuss keray time is

Answer is wrong mr. shahid, could you explain how you have done it.

ans kia nkla h sb ka????

aoa formula konsa use kiya hai ap ny mera ans ghalt a rha hai

mara to phr sab sa hi different ha

ab kya ho ga mara

where r the ans

1

2

3

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