MGMT714 - Advanced Supply Chain Management

MGMT714 GDB 1 Solution and Discussion

SEMESTER FALL 2019 ADVANCED SUPPLY CHAIN MANAGEMENT (MGMT714) ASSIGNMENT NO.01 Total Marks: 10 Question: Due Date: 28th January, 2020 “Let’s Build” a construction company has been assigned a project of constructing a multistory building in the center of city. At the moment, the company is looking for vendors who could supply electric switches for the building. “Smart Switches”, a newly established firm, has offered its products to the company. To secure the business, “Smart Switches” is offering quantity discounts to the company as given in the following table: No. of Switches up to 1999 2000 to 4999 5000 to 9999 10000 or more Price per Switch Rs.1.25 Rs.1.20 Rs.1.18 Rs.1.15 The demand for the switches is 60 units daily and the company operates 300 days a year. It costs Rs.32 to place an order of switches and the holding cost per switch is 20% per annum of the price. Task: a) Being procurement manager of the construction company, it is your task to find an optimal quantity based on the Economic Order Quantity Model. b) Calculate the number of orders that the firm needs to place for this building. Instructions:  Show the necessary calculations in solution.  No theoretical definitions and explanations are required.  Watch video lectures and consult book/notes to complete the assignment (8 marks) (2 marks) Important: 24 hours extra / grace period after the due date are usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. Deadline:  Make sure to upload the solution file before the due date on VULMS.  Any submission made via email after the due date will not be accepted. Formatting Guidelines:  Use the font style “Times New Roman” or “Arial” and font size “12”.  It is advised to compose your document in MS-Word format.  You may also compose your assignment in Open Office format.  Use black and blue font colours only. Referencing Guidelines:  Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various websites containing information for better understanding or visit http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html Rules for Marking Please note that your assignment will not be graded or graded as Zero (0), if:  Any of the given instructions is not followed  It is copied or plagiarized  It is submitted after the due date.  The file you uploaded does not open or is corrupt.