Homework Help: Quantitative methods.

Posted by Taskeen on Thursday, November 22, 2012 at 6:03am.

INVENTORY MODEL

The demand for a particular item is 10 000 units per yer. The number of units per order is 900. The set cost is rs 90 per order, the cost of item is rs2 per item and the holding cost is rs 080 per item per month. If no shortages are allowed and the replacement is instantaneous :
find
EOQ, the time between orders, numbr of ordersper year the minimum total yearly inventory cost>

Just check My answers if its good

DEMAND- 10 000
NUM. OF UNITS PER YEAR ; 900
ORDERING COST- RS 90
holding cost -0.80
Purchase cost :rs2

Eoq: In a Square root , inside it: 2 xrs90 10,000 /0.80 =1500

number of order= 10 000/1500= 66.

time between orders = t=Q/D
which is 1500/10 000= 0.15

mimimum total yearly inventory cost =TC =d/eoq x ordering cost + Eoq/2 x holding cost = 1200

just check if its good.

No one has answered this question yet.

Answer this Question

Related Questions

Business - Thomas Kratzer is the purchasing manager for the headquarters of a ...
math - You manage inventory for your company and use a continuous review ...
math - what is the dollar value of ending inventory if there were 17,000 units ...
accounting - Here is another one: BDH Corporation, which makes only one product...
very hard math question please help - The Candle Shop -Annual Inventory of ...
accounting - BDH Corporation, which makes only one product, Kisty, has the ...
Finance accounting - Eddings Company had a beginning inventory of 400 units of ...
Accounting urgent Edit - The management of Stampfer Inc. asks your help in ...
Accounting - March 3 Inventory units 60 per unit $1,500 total $90,000 March 8 ...
business - At the end of January, Mineral Labs had inventory of 725 units, which...

For Further Reading

First Name:
School Subject:
Answer: