ard Font C7 f 150268 D 1 H A local company located in Nowa assemblies engines for customized trening sportutility vehicle SUV. During the year end 2019 financial review, the company is concerned with its bloated inventory cost for the past five years. The profitability of the company has been declining year on year due to the effectof the increasing inventory costs. The newly hired manager who is a mechanical engineer is tasked to look into this matter and will provide a comprehensive proposal report to the company CEO to reduce the bloating inventory cost. The current consumption or usage of parts of the assembly departmentis shown in Table Q1. This data shows the typical annual usage or consumption of component parts for its engines. He found out that there is big mismanagement or neglect of the company inventories. Currently, the company is ordering parts from its suppliers locally and abroad once every three months Develop an ABC analysis for the company's inventories. Show completely the results in tabular form using excel [6] Create a PARETO analysis for the ABC analysis using excel [4 (m) Considering your class A' inventories, determine the economic order quantity EOQ using the following assumptions; zero safety stock for each class A inventories, sucking cost is 10% of the unit price, ordering cost for any class A inventories is 120 OMR per order. Determine the cost savings if EOQ is followed instead of the current ordering system of the company which is once Table Q1: Annual Usage of Component Parts Part Number Annual quan un unit 1110 30,92 128H 48,525 50 196G 7,338 22.40 205Y 2.872 270.00 216U 2,991 12.80 217J 3.467 122.40 228G 823 98.40 235D 83.161 1.80 249E 13.646 8.30 258L 62.40 281K 19.000 1.20 2723 4.411 9.00 324H 20.163 1.50 333C 2.289 15.40 3340 7,234 24.00 3528 12.883 19.20 3910 2. 107 51.60 421A 4.079 4,488 7.80 4365 71,578 0.25 452F 3.348 13.50 482R 3.731 16.80 483H 3.000 132.00 478L 28.789 1.20 5211 2.788 13.80 5329 1.121 144.00 8108 29,700 5.10 Questions eady 2.059 4325 ard Font C7 f 150268 D 1 H A local company located in Nowa assemblies engines for customized trening sportutility vehicle SUV. During the year end 2019 financial review, the company is concerned with its bloated inventory cost for the past five years. The profitability of the company has been declining year on year due to the effectof the increasing inventory costs. The newly hired manager who is a mechanical engineer is tasked to look into this matter and will provide a comprehensive proposal report to the company CEO to reduce the bloating inventory cost. The current consumption or usage of parts of the assembly departmentis shown in Table Q1. This data shows the typical annual usage or consumption of component parts for its engines. He found out that there is big mismanagement or neglect of the company inventories. Currently, the company is ordering parts from its suppliers locally and abroad once every three months Develop an ABC analysis for the company's inventories. Show completely the results in tabular form using excel [6] Create a PARETO analysis for the ABC analysis using excel [4 (m) Considering your class A' inventories, determine the economic order quantity EOQ using the following assumptions; zero safety stock for each class A inventories, sucking cost is 10% of the unit price, ordering cost for any class A inventories is 120 OMR per order. Determine the cost savings if EOQ is followed instead of the current ordering system of the company which is once Table Q1: Annual Usage of Component Parts Part Number Annual quan un unit 1110 30,92 128H 48,525 50 196G 7,338 22.40 205Y 2.872 270.00 216U 2,991 12.80 217J 3.467 122.40 228G 823 98.40 235D 83.161 1.80 249E 13.646 8.30 258L 62.40 281K 19.000 1.20 2723 4.411 9.00 324H 20.163 1.50 333C 2.289 15.40 3340 7,234 24.00 3528 12.883 19.20 3910 2. 107 51.60 421A 4.079 4,488 7.80 4365 71,578 0.25 452F 3.348 13.50 482R 3.731 16.80 483H 3.000 132.00 478L 28.789 1.20 5211 2.788 13.80 5329 1.121 144.00 8108 29,700 5.10 Questions eady 2.059 4325
