Consider the data for a two item inventory model given in Table 13.13. The company initially...
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Consider the data for a two item inventory model given in Table 13.13. The company initially does not want to consider shortage cost but realizes that a 1% discount can be got if the order quantity is 100 units more than the EOQ for each item. It is willing to try and experiment with backorders. Verify if the discount can be accepted. Table 13.13 Data for Two Items Item A Item B Annual demand 10000 15000 Order cost Carrying cost Shortage cost 300 300 20% of Rs. 30 20% of Rs. 50 80 150 Consider the data for a two item inventory model given in Table 13.13. The company initially does not want to consider shortage cost but realizes that a 1% discount can be got if the order quantity is 100 units more than the EOQ for each item. It is willing to try and experiment with backorders. Verify if the discount can be accepted. Table 13.13 Data for Two Items Item A Item B Annual demand 10000 15000 Order cost Carrying cost Shortage cost 300 300 20% of Rs. 30 20% of Rs. 50 80 150
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Given Item A Annual demand 10000 units Order cost Rs 300 Carrying cost 20 of Rs 50 Rs 10 per unit Sh... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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