Question

Apex Spinning Ltd. has developed the following costs and other data pertaining to one of its raw materials:
Normal use per day 400 units
Maximum use per day 600 units
Minimum use per day 100 units
Working days per year 250
Lead time 8 days
Cost of placing one order Tk 20
Cost per unit of material Tk 2.5
Carrying cost % 10%
Required:
a. Economic order quantity
b. Safety stock
c. Reorder point
d. Normal maximum inventory
e. Absolute maximum inventory
f. Average normal inventory

Answer 1

Answer:

Economic order quantity A part is the answer