Quantitative methods.

posted by .


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 :
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
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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Advanced Production

    Montegut Manufacturing produces a product for which the annual demand is 10,000. Production averages 100 per day, while demand is 40 per day. Holding costs are $1.00 per unit per year;set-up costs $200.00. If they wish to produce this …
  2. accounting

    1. From the figures given below, calculate Economic Order Quantity and a number of orders to be placed per year. Total consumption of material per year 10,000 kg Buying cost per order Rs.50 Unit cost of material Rs.2 per Kg Carrying …
  3. Accounting

    Hanson Corp uses a process costing system. Materials are added at the start of the process. Beginning inventory for January consisted of 1,900 units (40% complete for conversion) with a cost of $15,000. 10,900 units were started and …
  4. Business

    Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas’s fastest moving inventory item has a demand of 6000 units per year. The cost of each unit …
  5. Stats

    Consider the Avionic Manufacturing Company that wishes to meet a demand of 10 units per month by purchasing the items from a vendor with a lead time of three-quarters of a month. The item cost is $2.50 per unit, replenishment cost …
  6. math

    You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business 310 days per year. One of your most important items experiences demand of 24 …
  7. quantitative methods for business

    Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation of different suppliers. One particular supplier provides a part where the assumptions of …
  8. quantitative methods for business

    A perishable diary product is ordered daily at a particular supermarket. The product, which cost $1.19 per unit, sells for $1.65 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per …
  9. math

    Q1.Navyug industriess Ltd.has annual requirement of 5,000 piece of brake cylinder for its popular brand of golf carts.each brake cylinder has a carrying cost of 25 per unit per year.the ordering cost per order is 800.calculate the …
  10. mangerial economics

    suppose it cost $1000 to prepare a factory to produce a certain item,after the preparation is complete, it cost $40 to produce each item. After the items are produced, it cost an average of $10 per year for each item held in inventory. …

More Similar Questions