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red by an Air-conditioner manufacturer from a local firm and are consumed at an average rate of 500 per month. If the procurement cost is Rs. 25 per order and the cost of holding it in stock is Rs. 1.20 per unit per year, determine the quantity that should be procured at a time to optimize the costs involved. If the consumption of the above item increases to 40 numbers per day and its actual inventory carrying cost is Rs. 0.02 per unit ner day what will be its revised FOO quantity?

red by an Air-conditioner manufacturer from a local firm and are consumed at an average rate of 500 per month. If the procurement cost is Rs. 25 per order and the cost of holding it in stock is Rs. 1.20 per unit per year, determine the quantity that should be procured at a time to optimize the costs involved. If the consumption of the above item increases to 40 numbers per day and its actual inventory carrying cost is Rs. 0.02 per unit ner day what will be its revised FOO quantity?

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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Compressors are procured by an Air-conditioner manufacturer from a local firm and are consumed at an average rate of 500 per month. If the procurement cost is Rs. 25 per order and the cost of holding it in stock is Rs. 1.20 per unit per year, determine the quantity that should be procured at a time to optimize the costs involved. If the consumption of the above item increases to 40 numbers per day and its actual inventory carrying cost is Rs. 0.02 per unit per day, what will be its revised EOQ quantity?
Transcribed Image Text:Compressors are procured by an Air-conditioner manufacturer from a local firm and are consumed at an average rate of 500 per month. If the procurement cost is Rs. 25 per order and the cost of holding it in stock is Rs. 1.20 per unit per year, determine the quantity that should be procured at a time to optimize the costs involved. If the consumption of the above item increases to 40 numbers per day and its actual inventory carrying cost is Rs. 0.02 per unit per day, what will be its revised EOQ quantity?
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