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a) Finance department of ABC Ltd. gathered the following information w.r.t inventory of its goods. The carrying costs per unit of inventory are Rs 10.
a) Finance department of ABC Ltd. gathered the following information w.r.t inventory of its goods. The carrying costs per unit of inventory are Rs 10. The fixed costs per order are Rs 20. The number of units required is 30,000 per year. The variable costs per unit ordered are Rs 2 and the purchase cost price per unit is Rs 30. Determine the economic order quantity, total number of orders in a year and the time gap between 2 orders. . b.) What are ABC and JIT methods of inventory control?. . (15+5 marks)
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