The costs of placing an order are Rs. 150 per order. It is estimated that 1000...

Transcribed Image Text:

The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity. What is the time between the placing of orders? The procurement lead time is one month. What is the re-order point based on the on-hand inventory level? The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity. What is the time between the placing of orders? The procurement lead time is one month. What is the re-order point based on the on-hand inventory level?

Answer rating: 100% (QA)

To determine the optimal order quantity you can use the Economic Order Quantity EOQ formula EOQ 2 De... View the full answer