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Farmfresh sells 7 5 0 units per month of watermelon. The unit cost of a watermelon to the store is Rs , 1 1 and
Farmfresh sells units per month of watermelon.
The unit cost of a watermelon to the store is Rs
and the cost of placing order is Farmfresh
uses an inventrory carrying charge of per ear.
Determine the optimal order quantidy, order frequency,
and the annual cost of inventory management.
If through automation of the purchasing process, the
ordering cost can be cut to Rt what will be the
new economic order quantity, order frequency, and
annual inventory mamagement cost? Explain there
rescelts.
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