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

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?

Question 2 Answer

EOQ =

Time between orders =

Re-order Point =

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

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

Related Questions

Greetings,  looking for someone to do my discussion post. Please see details below. offer your perspective on what is contract management, the contract

Greetings,  looking for someone to do my discussion post. Please see details below. offer your perspective on what is contract management, the contract life cycle, and contracting competencies.  Consider the four supply chain alignment configurations discussed in the Dynamic Supply text.  The four supply chain configurations are lean supply chains, agile supply

RESEARCH PAPER ASSIGNMENT INSTRUCTIONSOVERVIEWSelect an organization of your choice that, you believe, is facing organizational issues.Make sure to

RESEARCH PAPER ASSIGNMENT INSTRUCTIONSOVERVIEWSelect an organization of your choice that, you believe, is facing organizational issues.Make sure to select an organization that has publicly available information to substantiate yourclaims, and it cannot be an organization where you worked or are currently working. In 1-2pages, provide a description of two to

Assessment DetailsFormat: Case study Length/Duration: 2000 words Task Description: Please download the instruction sheet under “Supporting Resources”

Assessment Details Format: Case study Length/Duration: 2000 words Task Description: Please download the instruction sheet under “Supporting Resources” below Goal: Case Study Report (based on Modules 1- 4) Learning Outcomes Assessed: The relationship between international trade and living standard Identify the costs and benefits of trade restrictions Discuss the role of international organisations in