1. Based on the above Find and explain the economic order quantity and the total inventory cost per annum. The costs of placing an order are Rs. 150 per

1. Based on the above

Find and explain the economic order quantity and the total inventory cost per annum.

The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.

The annual requirements for a particular raw material are 2,000 units costing Re. 1 each to the manufacturer. The ordering cost is Rs. 10 per order and the carrying cost 16% per annum of the average inventory value.

1. Based on the above

Find and explain the economic order quantity and the total inventory cost per annum.

Question 1 Answer:

EOQ =

Total Inventory Cost per annum = Rs.

The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.

2. Based on the above, explain the following

 What is the time between the placing of orders?

The procurement lead time is one month.

What is the re-order point based on the on-hand inventory level?

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

CASE STUDY: PRICING AND DELIVERY AT KAR FOODS ASSIGNMENTINSTRUCTIONS OVERVIEWThis week there is a focus on managing demand to counter predictable

CASE STUDY: PRICING AND DELIVERY AT KAR FOODS ASSIGNMENTINSTRUCTIONS OVERVIEWThis week there is a focus on managing demand to counter predictable variability through priceand promotion. By using sales and operations planning to manage supply and demand together,overall profitability can be maximized. Collaboration can improve supply chain performance. Alack of coordination

5-2 Project Draft: Understanding Our Identity Through the Humanities HUM 102 Module Five Project Draft Guidelines and RubricOverview Congratulations! You

5-2 Project Draft: Understanding Our Identity Through the Humanities HUM 102 Module Five Project Draft Guidelines and RubricOverview Congratulations! You are three-quarters of the way through the cour 5-2 Project Draft: Understanding Our Identity Through the Humanities HUM 102 Module Five Project Draft Guidelines and RubricOverview Congratulations! You are three-quarters

BA 385 Final Case Study: Target’s 2025 DEI Retrenchment and the Stakeholder Fallout Background In early 2025, Target Corporation made the controversial

BA 385 Final Case Study: Target’s 2025 DEI Retrenchment and the Stakeholder Fallout Background In early 2025, Target Corporation made the controversial decision to scale back its long-standing Diversity, Equity, and Inclusion (DEI) initiatives. This included discontinuing the Racial Equity Action and Change (REACH) program and restructuring its Supplier Diversity

Discussion Thread: Promotion For this discussion, you will research peer-reviewed journal articles on one of the 4Ps – Promotion. Keyword search terms

Discussion Thread: Promotion For this discussion, you will research peer-reviewed journal articles on one of the 4Ps – Promotion. Keyword search terms might include the following:  Personal selling, advertising, public relations, and sales promotion (contests, coupons, and more…). Once you have selected your peer-reviewed journal articles, post a synopsis of the