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A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the
A manufacturer has to supply his customers 52,800 units of his product per year. The unit cost of the product is Ksh. 20 and the inventory carrying charges are 10% per annum. The cost of one procurement amounts to Kshs. 300. Determine:
Demand | 100 | 150 | 200 | 250 | 300 |
Probability | 0.20 | 0.25 | 0.30 | 0.15 | 0.10 |
i) Economic order quantity. ii) Number of orders per year. iii) Optimum period of supply per optimum order. iv) Optimum cost.
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