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.

## 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 ...
- Stats - Consider the Avionic Manufacturing Company that wishes to meet a demand ...
- quantitative methods for business - Cress Electronic Products manufactures ...
- accounting - 1. From the figures given below, calculate Economic Order Quantity ...
- quantitative methods for business - A perishable diary product is ordered daily ...
- Accounting - Hanson Corp uses a process costing system. Materials are added at ...
- Finanace - Beginning inventory 600 units @ $ 10 Purchases ( in order from first ...
- quantitative methods for business - A manager of an inventory system believes ...
- math - Q1.Navyug industriess Ltd.has annual requirement of 5,000 piece of brake ...

More Related Questions