ABC corporation has got a demand for particular part at 10,000 units per year. The cost per unit is #2 and it costs #36 to place an order and to process the delivery. The inventory carrying cost is estimated at 9 percent of average inventory investment. Determine; (i) Economic order quantity (ii) Optimum number of orders to be placed per annum (iii) Minimum total cost of inventory per annum

Answer rating: 100% (QA)

Given Demand D 10000 units per year Cost per unit C 2 Ordering cost S 36 Inventory ... View the full answer