Posted by
**Taskeen** on
.

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.