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A factory uses Rs. 32000 worth of a raw material per year. The ordering cost per order is Rs. 50 and the carrying cost is
A factory uses Rs. 32000 worth of a raw material per year. The ordering cost per order is Rs. 50 and the carrying cost is 20 percent per year of the average inventory. If the company follows the EOQ purchasing policy, calculate the reorder point, the maximum inventory and the average inventory. It is given that the factory works for 360 days a year, the lead time is 9 days and the safety stock is worth Rs. 300.
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