A building material shop owner in Roorkee is going through the last year$’$s inventory cost of cement sacks, a sack of cement costs $500$ Rs$.$ The average monthly demand last year was $1250$ units, the cost per order, including the transport was $1200$ Rs and annual unit holding cost was $20\%$ of material cost. Last year he ordered the lots of $500$ sacks per order.

What was the total ordering cost for the last year?

Answer rating: 100% (QA)

To calculate the total ordering cost for the last year we need to conside... View the full answer