Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions

Question

Solve each equation. x = x + 3x +9

Answered: 1 week ago