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please solve it as soon as possible emergency Question 3 (10 Marks) PAK Company buys 500 boxes of item X-100 every 2 months. It means
please solve it as soon as possible emergency
Question 3 (10 Marks) PAK Company buys 500 boxes of item X-100 every 2 months. It means 6 orders are placed in a year. Company is not using EOQ model. X-100 is a perishable item and needs much care in storage. RSS Cost per unit of x-100 Ordering costs Annual Variable carrying cost per unit per year Rs380 Rs1 Required: 1. Determine total ordering and carrying costs under current policy 2. Determine the Economic Order Quantity and the related total ordering and carrying costs under EOQ Model 3. What order size decision Company should make if the supplier offers a 3% discount for the order size of 1500 units. 4. Based on cost and benefit analysis, evaluate all three options, and decide which one is the most suitable for the company. 5. Discuss any qualitative factors which may impact upon the decision of orderingStep by Step Solution
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