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A firm uses every year 12,000 units of a raw material costing Rs. 1.25 per units. Ordering cost in Rs. 15.00 per order and the holding cost is 5% per year of average inventory. a) Find the economic order quantity. The firm allows E.O.Q. purchasing policy. It operators for 300 days per year. Procurement time is 14 days and safety stock is 400 units. Find the reorder point, the maximum inventory and the average inventory. b)

A firm uses every year 12,000 units of a raw material costing Rs. 1.25 per units. Ordering cost in Rs. 15.00 per order and the holding cost is 5% per year of average inventory. a) Find the economic order quantity. The firm allows E.O.Q. purchasing policy. It operators for 300 days per year. Procurement time is 14 days and safety stock is 400 units. Find the reorder point, the maximum inventory and the average inventory. b)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A firm uses every year 12,000 units of a raw material costing Rs. 1.25 per units. Ordering cost in Rs. 15.00 per order and the holding cost is 5% per year of average inventory. 6. a) Find the economic order quantity. The firm allows E.O.Q. purchasing policy. It operators for 300 days per year. Procurement time is 14 days and safety stock is 400 units. Find the reorder point, the maximum inventory and the average inventory. b)
Transcribed Image Text:A firm uses every year 12,000 units of a raw material costing Rs. 1.25 per units. Ordering cost in Rs. 15.00 per order and the holding cost is 5% per year of average inventory. 6. a) Find the economic order quantity. The firm allows E.O.Q. purchasing policy. It operators for 300 days per year. Procurement time is 14 days and safety stock is 400 units. Find the reorder point, the maximum inventory and the average inventory. b)
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