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Aparticularitemhasademandof9,000unitsperyear.Thecostofoneprocurement isKshs.100andtheholdingcostperunitisKshs.2.40peryear.Thereplacementis instantaneousandnoshortagesareallowed.Determine: i. Theeconomiclotsize ii. Thenumberofordersperyear iii. Thetimebetweenorders iv. ThetotalcostperyearifthecostofoneunitisKshs.1.00 b) Astockisthastosupply400unitsofaproducteveryMondaytohiscustomers.He getstheproductatKshs.50perunitfromthemanufacturer.Thecostofordering andtransportationfromthemanufacturerisKshs.75perorder.Thecostofcarrying inventoryis7.5%peryearofthecostoftheproduct.Find: i. Theeconomiclotsize ii. Thetotaloptimalcost(Includingthecapitalcost), iii. ThetotalweeklyprofitiftheitemissoldforKshs.55perunit

Aparticularitemhasademandof9,000unitsperyear.Thecostofoneprocurement

isKshs.100andtheholdingcostperunitisKshs.2.40peryear.Thereplacementis

instantaneousandnoshortagesareallowed.Determine:

i.Theeconomiclotsize

ii.Thenumberofordersperyear

iii.Thetimebetweenorders

iv.ThetotalcostperyearifthecostofoneunitisKshs.1.00

b)Astockisthastosupply400unitsofaproducteveryMondaytohiscustomers.He

getstheproductatKshs.50perunitfromthemanufacturer.Thecostofordering

andtransportationfromthemanufacturerisKshs.75perorder.Thecostofcarrying

inventoryis7.5%peryearofthecostoftheproduct.Find:

i.Theeconomiclotsize

ii.Thetotaloptimalcost(Includingthecapitalcost),

iii.ThetotalweeklyprofitiftheitemissoldforKshs.55perunit

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