latest MGT613 Current Final Term Papers Spring 2011 July 20

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1-anual ordering cost
Ordering costs: Costs of ordering and receiving Inventory, these are the actual costs that
vary with the actual placement of the order.
2-Cmpnies cost reduction activities
Cost reduction can be achieved through reduction, elimination, modification of
manufacturing activity. Through in depth analysis the best and least cost path is adopted
for each activity.
Focuses on in-house procedures and processes at this stage, the company will do a
functional analysis of every department to determine where efficiencies can be improved.
In a manufacturing plant the cost of production will be evaluated. In a non-profit, the
value of service offered will be compared to the cost of the service to determine if it
should be continued. Purchasing departments will evaluate inventory levels. The cost of
selling will be broken down into activities.
3-Expectd time or standard deviation
4-MRP
5-quening for waiting customer
Queuing theory: Mathematical approach to the analysis of waiting lines.
1. Goal of queuing analysis is to minimize the sum of two costs Customer waiting costs
and
Service capacity costs.
2. Waiting lines are non-value added occurrences
Implications of Waiting Lines
1. Cost to provide waiting space
2. Loss of business
a. Customers leaving
b. Customers refusing to wait
3. Loss of goodwill
4. Reduction in customer satisfaction
5. Congestion may disrupt other business operations