Question

2. NEROLAC GALORE BUYS A STANDARD TYPE OF ROOF PAINT (CALLED SUPREME STAR ROOF)IN 50 LITRE CONTAINERS AT A PRICE OF 800 PER CONTAINER.19200 OF THESE CONTAINERS ARE USED EACH YEAR.THE STOCK CONTROLLER ESTIMATES THAT THE COST OF PLACING AND RECCEIVING A TYPICAL SUPREME STAR ROOF ORDER IS 450.THE CONTROLLER ESTIMATE OF THE ANNUAL COST OF CARRYING THIS PRODUCT IS 6 PER CONTAINER..
SUPPOSE NEROLAC WAS TO ORDER 800 CONTAINERS OF SUPREME STAR ROOF PER ORDER PLACED DURING THE YEAR.CALCULATE THE FOLLOWING:
1. NUMBER OF ORDERS
2. ANNUAL ORDERING COST
3. AVERAGE QUANTITY IN INVENTORY
4.Annual holding cost
5.Total annual cost of inventory

Answer 1

Answer:

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