Question

Pooja pipes ltd uses about 75000 Valves per year and the usage is fairly constant at 6250 valves per month. The valve cost rs 1.50 per unit when bought in large quantities and the carrying cost is estimated to be 20 percent of average investment on an annual basis the cost to place an order and process the delivery is rs 18 it takes 45 days to receive delivery from the date of an order and a safety stocks of 3250 valves is desired
You are required to determine
. The most economical order quantity and frequently of order
. The reorder point
The most economical order quantity if the valve cost rs 4.50 each instead of rs 2.50 each

Answer 1

State, with reasons in brief, whether the following statements are true or false : (i), Accounting Standard–15 deals with earnings per ...