Question

49. About 50 items are required every day for a machine. A fixed cost of 50 per order is
incurred for placing an order. The inventory carrying cost per item amounts to Re. 0.02 per
day. The lead period is 32 days. Compute reorder level.
a. 1,200 items
b. 1,400 items
C. 1,600 items
d. 1,800 items​

Answer 1

Answer:

please follow and mark as brainlist

Answer 2

Answer:

1600 items

Step-by-step explanation:

1- Economic order quantity=√2.A.B÷s

where,

A= Annual consumption (50items×365 days)=18.250

B= buying (ordering) cost = rs.50

S= storage cost per item per annum (0.02×365days)= rs. 7.30

ECQ= √2×18.250×50÷7.30

= 500 item's.

2- Reorder level = maximum consumption per day × maximum lead time.

= 50 × 32

= 1600 items.