Question: a. DOS computers is one of the known computer hardware store situated in Hafeez Centre, Lahore. It imports heat sink systems at a fixed price

 a. "DOS computers" is one of the known computer hardware store

a. "DOS computers" is one of the known computer hardware store situated in Hafeez Centre, Lahore. It imports heat sink systems at a fixed price of Rs. 900/- per unit from the sole distributer. On January 1 st 2020 , the store was offered 20% discount on orders of 400 or more units. Provided further that the estimated sales for the year are 800 units, the cost incurred per order is Rs. 900 and the average holding cost per unit per annum is estimated to be Rs. 120 per unit. The full price is likely to remain Rs. 900 during the year. Please ignore opening and closing inventories, safety stock etc. You are required to take a decision whether to obtain a quantity discount or not. Please comment why or why not? b. A local computer repair shop uses 35,000 units of a part each year (A maximum consumption of 100 units per working day). t costs Rs. 30 to place and receive an order. The shop orders in lots of 400 units. It cost Rs, 4 to carry one unit per year of inventory. Requirements: (i) Caicuiate totai annuai ordiering cost (2) Calculate total annual carrying cost (3) Calculate total annual inventory cost (4) Calculate the Economic Order Quantity (5) Calculate the total annual cost inventory cost using EOQ inventory Policy (6) How much save using EOQ (7) Compute ordering point assuming the lead time is 3 days

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