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A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the inventory carrying charges are 10% per

A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the inventory carrying charges are 10% per

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the inventory carrying charges are 10% per annum. The cost of one procurement amounts to Kshs. 300. Determine: Demand 100 150 200 250 300 Probability 0.20 0.25 0.30 0.15 0.10 i) Economic order quantity. ii) Number of orders per year. iii) Optimum period of supply per optimum order. iv) Optimum cost.
Transcribed Image Text:A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the inventory carrying charges are 10% per annum. The cost of one procurement amounts to Kshs. 300. Determine: Demand 100 150 200 250 300 Probability 0.20 0.25 0.30 0.15 0.10 i) Economic order quantity. ii) Number of orders per year. iii) Optimum period of supply per optimum order. iv) Optimum cost.
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