A manufacturer buys cardboard boxes from a supplier. The monthly demand is 3000 boxes and is...

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A manufacturer buys cardboard boxes from a supplier. The monthly demand is 3000 boxes and is uniform throughout the year. The cost of each box is Rs. 4.00. The estimated order cost is Rs. 6.00 and the carrying cost is 2.5% per month. (a) What are the EOQ, the annual order cost & the annual carrying cost? (b) If the actual demand turns out to be 6000 per month, and you have used the EOQ as calculated in sec (a), what would be the annual order & carrying cost? - A manufacturer buys cardboard boxes from a supplier. The monthly demand is 3000 boxes and is uniform throughout the year. The cost of each box is Rs. 4.00. The estimated order cost is Rs. 6.00 and the carrying cost is 2.5% per month. (a) What are the EOQ, the annual order cost & the annual carrying cost? (b) If the actual demand turns out to be 6000 per month, and you have used the EOQ as calculated in sec (a), what would be the annual order & carrying cost? -

Answer rating: 100% (QA)

a Calculating for the original scenario with a monthly demand of 3000 boxes 1 Economic Order Quantit... View the full answer