Answers
Hence solved first subquestion
here is the working note for solution of first sub question
second subquestion is done in this page!
Third and fourth subpart is done here..
Notes:-
× sign represents *( multiply).
Part -a i) The highest purchased number by the of butt hists shop that in should order be to minimize calculated by stock adminstration tOQ (Economic order cost can Quantity). EOQ = J2AO where, A = o = Annual demand Ordering cost per order per unit per cost annum. c = carrying 2x10800x500 30 108ooooo 30 600 units
Working notes's A = 900 x 12 = 10800 0 - 500$ (given) c = 2000x 1.5% = 30$
ei) Number of anders to be placed each year: of Number arders = Total requirement annual EOQ 10800 600 = 18 orders
-ii) Average annual Ordering cost :- Average annual ordering cost = Number of anders x ordering cost/onder 500 X 18 4500$ iv) Average annual careying Cost'; umber of shiets in a batch cost = Average careying x carrying cost 600x30 9000 $
.
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