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The semiannual demand of a product, Zoom, is 5000 units, the Ordering cost is k20/order, while the carrying cost is 20% of the ordering or
The semiannual demand of a product, Zoom, is 5000 units, the Ordering cost is k20/order, while the carrying cost is 20% of the ordering or unit cost cost. Other data is available on the data below ORDER SIZE, UNITS UNIT COST, K 1 to 499 5.5 500 to 999 4.5 1000 and above 3.9 a. Using the Price Break model, calculate the Economic Order Quantity( 20 Marks) Recently the Minister of health revealed to the public that the ministry had enormous amounts of expired drags which needed to be destroyed. These drags got expired while in the warehouse at the Medical Stores. The drags could not be delivered at the right time. It was also heard that some drags at the time of procurement had almost expired and there Wes no need to begin to move them to hospitals and health centres because it was a costly action to do that From this narration, a. 1.Highlight inventory and logistical problems at the Drag main warehouse b. 2. Indicate the impact of these problems on the Business and customers c. If you were the Logistician at Medical stores, how can you avoid these serious problems (40 marks) The semiannual demand of a product, Zoom, is 5000 units, the Ordering cost is k20/order, while the carrying cost is 20% of the ordering or unit cost cost. Other data is available on the data below ORDER SIZE, UNITS UNIT COST, K 1 to 499 5.5 500 to 999 4.5 1000 and above 3.9 a. Using the Price Break model, calculate the Economic Order Quantity( 20 Marks) Recently the Minister of health revealed to the public that the ministry had enormous amounts of expired drags which needed to be destroyed. These drags got expired while in the warehouse at the Medical Stores. The drags could not be delivered at the right time. It was also heard that some drags at the time of procurement had almost expired and there Wes no need to begin to move them to hospitals and health centres because it was a costly action to do that From this narration, a. 1.Highlight inventory and logistical problems at the Drag main warehouse b. 2. Indicate the impact of these problems on the Business and customers c. If you were the Logistician at Medical stores, how can you avoid these serious problems (40 marks)
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