9. The annual demand of a particular item used by a company is 10,000 units. This item

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9. The annual demand of a particular item used by a company is 10,000 units. This item may be obtained from either an outside supplier or subsidiary company. The relevant data for the procurement of the item are given below:

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(i) What purchase quantity and from which source should you recommend to procure?
(ii) What would be the minimum total cost in that case?

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Quantitative Techniques In Management

ISBN: 99835

4th Edition

Authors: N D VOHRA

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Question Posted: Aug 30, 2024 07:01 AM

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9. The annual demand of a particular item used by a company is 10,000 units. This item

Question:

Costs From outside supplier From subsidiary company Rs Rs Cost per unit Cost of placing an order 12 13 10 10 20 15 Cost of receiving an order Storage and all carrying cost, including capital cost per unit per annum 2 2

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Quantitative Techniques In Management

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