Question
A firms estimated demand for a material during the next year is 2,500 units. Acquisition costs are Rs 400 per order and carrying cost is
A firms estimated demand for a material during the next year is 2,500 units. Acquisition costs are Rs 400 per order and carrying cost is Rs 50 per unit. The safety stock is set at 25 per cent of the EOQ. The daily usage is 10 units and lead time is 10 days. Determine (a) the EOQ, (b) the safety stock, and (c) the reorder point.
Please do not copy from Chegg otherwise I have to report the answer. Explain the answer thoroughly by showing each step of the calculation.
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
