Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Premier PVC Pipes Limited produces A - grade PVC pipes for industrial usage. It has monthly demand of 2 , 0 0 0 Pipes. Each

 
Premier PVC Pipes Limited produces A-grade PVC pipes for industrial usage. It has monthly demand of 2,000 Pipes. Each Pipe require special PVC powder of 2.5 kg at the purchase price of Rs.80/Kg. The cost for placing an order is Rs.150 and Average holding cost is 8% of purchase price.A) Calculate total cost of Special PVCPowder by using Economic Order Size for placing an order?B)2% discount is offered by new vendor with purchase quantity of 1,500 kgwhether this offer should be accepted or not, Justify it with relevant cost saving calculation?C)2.5% discount iS offered by existig vertdr With purchase quantity of 4,000kg whether thisoffer should be accepted or not, Justify it with relevant cost saving calculation?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Premier PVC Pipes Limited Economic Order Quantity EOQ Analysis A Total Cost of Special PVC Powder using EOQ 1 Demand D 2000 pipesmonth 2 Order Cost S ... 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_2

Step: 3

blur-text-image_3

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

College Algebra

Authors: Michael Sullivan, Michael Sullivan III

11th Edition

0135226864, 9780135226865

More Books

Students also viewed these Accounting questions