To avoid running out of ingredients, Sonny supplies a certain amount of channeling material. Based on previous years of experience, sonny needs 1500 rollers of material per year. The price of material per roll is IDR 1,000,000. Material delivery costs Rp. 120,000 per order. The cost of storing materials (caretaker rental, shop rental, electricity) is 2% of the price of the materials. The number of working days in a year is 300 days. The waiting time for the order is 3 days. Help sonny determine:
a. most economical ordering quantities to keep inventory costs to a minimum
b. at the time when the order is made again
c. total annual inventory cost

Answer rating: 100% (QA)

a Following are the relevant quantities for calculation of economic orde... View the full answer