A dealer supplies you the following information pertaining to an item of inventory: (i) What will be

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A dealer supplies you the following information pertaining to an item of inventory:

image text in transcribed (i) What will be the optimal number of units of the inventory item he should buy in one lot?

(ii) What quantity he should allow to be back-ordered?

(iii) What will be the cost-savings, if any, resulting from back-ordering?

(iv) What would be the maximum inventory of the item at any time of the year?

(v) If the dealer wants that no more than 25% of the units can be back-ordered, should the policy of backordering be adopted?

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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 07:02 AM

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A dealer supplies you the following information pertaining to an item of inventory: (i) What will be

Question:

Annual demand : Buying cost Inventory carrying cost Back-ordering cost : 800 units Rs 150 per order Rs 3 per unit per year Rs 20 per unit per year

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Quantitative Techniques In Management

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