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Please answer all the questions. They all are the same part of one single question. Hekmatia Dawa Khana uses Neem oil for one of Its
Please answer all the questions. They all are the same part of one single question.
Hekmatia Dawa Khana uses Neem oil for one of Its Ayurbadiya drug. It requires 30 thousand litres of Neem oil annually. The oil must be purchased in multiples of 250 litres. ordering costs are Tk.550 per order. Annual carrying costs are 25 percent of the purchase price of Tk. 8 per liter. Hekmatia maintains a safety stock of 25,000 litres. The delivery time is 3 weeks ( 1 year =52 weeks). i. How many litres of the inventory should Hekmatia order to minimise its total cost? ii. At when inventory level should an order be placed to prevent having to draw on the safety stock? iii. What Is the average, maximum, and minimum value of inventory? Hekmatia Dawa Khana uses Neem oil for one of Its Ayurbadiya drug. It requires 30 thousand litres of Neem oil annually. The oil must be purchased in multiples of 250 litres. ordering costs are Tk.550 per order. Annual carrying costs are 25 percent of the purchase price of Tk. 8 per liter. Hekmatia maintains a safety stock of 25,000 litres. The delivery time is 3 weeks ( 1 year =52 weeks). i. How many litres of the inventory should Hekmatia order to minimise its total cost? ii. At when inventory level should an order be placed to prevent having to draw on the safety stock? iii. What Is the average, maximum, and minimum value of inventoryStep by Step Solution
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