Question: answers are given below. also use 360 days in a year so that answer will come correct. someone answered before and the ans were incorrect.
1. Dhakal Bread requires 20,000 bags of wheat per year. Each Bag contains 50kgs of wheat purchased at the rate of Rs. 25 per kg. It costs 10% of price for holding the wheat. Ordering cost per order is Rs. 125. It requires 5 days to receive the wheat once order has been placed and requires maintaining 10 days consumption in safety stock. a. What is EOQ in kg ? b. Determine the amount of safety stock. c. What is the total inventory cost of wheat including safety stock? [A/Q]O+[Q/2+SS]C d. What is the maximum inventory level? e. What is the average inventory level? f. Calculate reorder point. g. If the supplier offers 0.25% quantity discount for the order size of 20,000kgs of wheat, should the order be accepted? 10,000kgs;27,778kgs;Rs94,445;37,778kgs;32,778kgs;31,667kgs;Rs50,506
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