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

Module 2 – SLPConsumer Behavior, Production and CostsSLP Assignment Expectations Economic Impacts for Producers This week’s case focused on the consumer

Module 2 – SLPConsumer Behavior, Production and CostsSLP Assignment Expectations Economic Impacts for Producers This week’s case focused on the consumer side of economics. Producers must manage more constraints in their decision-making. Session Long Project 2 Resources Producer Price Index (PPI) (2024) Purchasing Power (2024) The Producer Price Index: What it is and why

Module 4 – CaseDuty EthicsAssignment Overview Business Controversies from a Duty Ethics Perspective  Duty or deontological ethics highlights the inherent

Module 4 – CaseDuty EthicsAssignment Overview Business Controversies from a Duty Ethics Perspective  Duty or deontological ethics highlights the inherent rightness of an action, independent of outcomes. It promotes consistent moral behavior. In a rapidly changing world, duty ethics is often referred to as a steadfast moral compass.  **Complete Case

1. Business In your final journal for this course, you will discuss entrepreneurship and organizational behavior.  First, describe the characteristics of

1. Business In your final journal for this course, you will discuss entrepreneurship and organizational behavior.  First, describe the characteristics of entrepreneurs and the entrepreneurial mindset.  Next, define organizational behavior in your own words. Identify how a manager’s entrepreneurial mindset and knowledge of organizational behavior can lead to an organization’s

In this section of your white paper, you will analyze the strategic management practices of the two organizations. Specifically, you should address the

In this section of your white paper, you will analyze the strategic management practices of the two organizations. Specifically, you should address the following critical elements: Strategic Management: Compare the elements of strategic planning and the strategic management process used by the two organizations. In other words, how did the organizations