Exercise 1 Norm of production supplies

An enterprise produces 3 types of products A, B, C. For their production it needs viscose (material I), polyamide (material II) and cotton (material III). Data about material consumption, planned

quantity, prices of materials and supplies are shown in tables: Material Delivery cycle Safety supply Technological supply

I 6 2 1

II 4 1 0

III 8 1 2

Material

Standard of consumption of

A in kg

Standard of consumption of

B in kg

Standard of consumption of

C in kgPrice of material € / kg

I 3 2 1 25

II 2 3 0 40

III 2 4 5 30

Planned amount of products per year in

pieces15 000 25 000 30 000

Task: Compute the total norm of production supplies.

Exercise 2 Norm of semi-finished production supplies An enterprise produces luxury leather sofas. Total costs

for production of 1 sofa are 2 500 €. In the first half of a year the enterprise will produce 1 500 sofas. Duration of production cycle of 1 sofa is 5 days. According to the character and possibilities of production capacity, the costs could increase in following ways:– 1. day 1 200 €, 2. day 350 €, 3. day 700 €, 4. day 250 €,

5. day 0 €.– 1. day 500 €, 2. day 300 €, 3. day 900 €, 4. day 400 €, 5.

day 400 €.

Task: Compute the norms of semi-finished production supplies by different flow of costs growing.

Exercise 3 Norm of finished production supplies

Moblex, Ltd. produces products in three sizes and in three price groups. We also know following information:

Task: Compute the total norm of finished production supplies.

Product

Planned production in

pieces per year

Price of 1

piece in € Sale cycle in days

Preparation of

expedition in days

K 10 000 1 450 10 5

L 16 000 1 200 8 3

M 12 000 1 130 6 2

Exercise 4

An enterprise has annual turnover 960 mil. € and average supplies are 80 mil. €.

Task: Compute turnaround rate (frequency) and turnaround period of supplies during one year (360 days).

Exercise 5 Computation of indicators of supplies utilization (short term assets)

Salva s.r.o., presents from first quarter of 2005 following amount of short – term

assets in classification according to basic groups:

Norm of production supplies..............................................540 000 Sk

Norm of un-finished products supply.................................890 000 Sk

Norm of finished products supply ...................................1 600 000 Sk

Total consumption of production supplies for 1 quarter..1 400 000 Sk

Quarterly costs for production..........................................3 680 000 Sk

Total value of production produced in 1. quarter.............4 850 000 Sk

Task: Compute indicators of utilization of short – term assets in specific

groups (turnaround period, turnaround speed, coefficient of short – term

assets fixation).