Math, asked by 17ce075, 2 months ago

A shopkeeper has a uniform demand of an item at

the rate of 50 items per month. He buys from a

supplier at a cost of Rs.6/- per item and the cost of

ordering is Rs. 10/- per order. If the stock holding

costs are 20% of stock value, how frequently

should he replenish his stock? Suppose the

supplier offers 5% discount on orders between 200

and 999 items and a 10% discount on orders

exceeding or equal to 1000 units. Can the

shopkeeper reduce his costs by taking advantage

of either of these discounts?​

Answers

Answered by dkcdscodi
1

ans is easy600000000 but I don't know that I was right or wrong

Answered by ravilaccs
0

Answer:

The frequency that he should replenish his stocks is $1.92$months The Optimal Order Quantity is 100 units

Given:

We are given demand rate $\mathrm{R}=600$items/year

Ordering or set up cost $C_{3}=R_{s} 10$

Holding cost C_{1}$ or $C_{1} l=R_{s} .6$ per item

$1=0.20$

To find: Economic ordering quantity

Method:

Economic ordering quantity (Q)=\sqrt{\frac{2 C_{3} R}{C_{1} I}}$\\\\$\sqrt{\frac{2 \times 10 \times 600}{6 \times 0.20}}=\sqrt{10000}\\\\\=100$units

Cycle time $(\mathrm{t})=\frac{E O Q}{R}$

\frac{100}{600}=0.16$ years

$0.16 \times 12=1.92$ months

$=1.92$ months

Therefore the frequency that he should replenish his stocks is $1.92$months The Optimal Order Quantity is 100 units

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