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University of South Asia: Theory

This document provides instructions for a final exam assignment in production and operations management. It includes questions on inventory definitions and functions, economic order quantity calculations, and inventory costing methods. Students are asked to define inventory types, EOQ, and discuss basic inventory functions for organizations. Math questions involve calculating EOQ, order quantities, total ordering costs, safety stock, and reorder points given cost and consumption data. Inventory balances are to be costed using FIFO, LIFO, and average costing methods. The assignment must be submitted by August 28th and include the student's name and ID in the subject line and cover page.

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41 views2 pages

University of South Asia: Theory

This document provides instructions for a final exam assignment in production and operations management. It includes questions on inventory definitions and functions, economic order quantity calculations, and inventory costing methods. Students are asked to define inventory types, EOQ, and discuss basic inventory functions for organizations. Math questions involve calculating EOQ, order quantities, total ordering costs, safety stock, and reorder points given cost and consumption data. Inventory balances are to be costed using FIFO, LIFO, and average costing methods. The assignment must be submitted by August 28th and include the student's name and ID in the subject line and cover page.

Uploaded by

JyothyFahmida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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University of South Asia

Production and Operations Management


Assignment for Summer 2021 semester
(Final Examination)

Theory:
1. What do you mean by the term Inventory? Discuss different types of Inventories.
2. What are the basic functions of Inventory for an organization?
3. Define EOQ.

Math:
1. CNA Tex Ltd uses EOQ logic to determine the order quantity for its various components
and is planning its orders. The annual consumption is 80,000 units; cost to place one
order is Tk 1,200; cost per unit is Tk 50 and carrying cost is 6% of unit cost.
Required:
a) EOQ
b) No. of order per year
c) Total ordering cost for the year

2. Apex Spinning Ltd. has developed the following costs and other data pertaining to one of
its raw materials:
Normal use per day 400 units
Maximum use per day 600 units
Minimum use per day 100 units
Working days per year 250
Lead time 8 days
Cost of placing one order Tk 20
Cost per unit of material Tk 2.5
Carrying cost % 10%

Required:
a. Economic order quantity
b. Safety stock
c. Reorder point
d. Normal maximum inventory
e. Absolute maximum inventory
f. Average normal inventory
3. The following information is to be used in costing inventory on October 31, 2020 of
BSRM Steel Ltd:
October 1 Beginning balance: 800 units @ Tk 6
,, 5 Purchased 200 units @ Tk 7
,, 9 Purchased 200 units @ Tk 8
,, 16 Issued 400 units
,, 24 Purchased 300 units @ Tk 9
,, 27 Issued 500 units

Required: Compute the cost of materials used and the cost assigned to the inventory at
the end of the month.
a. Fifo costing method
b. Lifo costing method
c. Average costing method

Instructions for submitting the assignment:

1. Assignment should be sent to [email protected].


2. Assignment may be hand written or computer composed.
3. A cover page must be included in the assignment.
4. In the subject line please write your name and id otherwise it will not be accepted.
5. Last date of submission for assignment is 28 August 2021.

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