Question

In ABC Limited, material consumption was as follows:
Average daily requirement: 12 units
Usual time required for obtaining supply: 2 weeks
Maximum requirement in a month of 4 weeks: 400 units
Minimum requirement in this period: 200 units
Economic order size: 240 units
Time sufficient for emergency supply: 2 days
Find out (i) Maximum. (ii) Minimum (in) Ordering (iv) Dangeran
Average Stock Level​

Answer 1

Answer:

(a) A manufacturer uses 200 units of a component every month and he buys them entirely from outside supplier. The order placing and receiving cost is Rs.100 and annual carrying cost is Rs.12. From this set of data calculate the Economic Order Quantity