Question
Frame the inventory Policy for ABC LTD whose annual demand (50 weeks) = 2000 units; Co = Rs 150 per order; Ch = Rs. 2.40
Frame the inventory Policy for ABC LTD whose annual demand (50 weeks) = 2000 units; Co = Rs 150 per order; Ch = Rs. 2.40 per unit per year; lead time is 2 weeks. If the purchase price per unit is Rs 10, what is the total cost incurred per year? If a new supplier is ready to offer a discount if the order size is more than 1000, what minimum discount could be accepted? If the demand is normally distributed with an average value of 2000 and standard deviation of 500 per year, what should be the inventory policy, if the company wants to have not more than 10% of dissatisfied customers? How will the policy change if the company does not want any dissatisfied customers at all? If backordering is allowed and the backordering cost is Rs1.20 per year, how will the policy change? If a supplier requests for delivering the order quantity in 5 weeks, how will the policy change?
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