Question

Ques, 30.
From the following particulars calculate the best quantity to be ordered:
Price per kg.
Ordering Quantity (in kg.)
Less than 500
500 and less than 1,600
1,600 and less than 4,000
4,000 and less than 8,000
8,000 and above
10.00
89.60
9.40
9.20
R 9.00
The annual requirement of the material is 8,000 kg. Stock holding (carrying) cost is 20% of material cost per annum.
Ordering (re-ordering) cost per order is 10.
rials​

Answer 1

Explanation:

From the following particulars calculate the best quantity to be ordered:

Ordering quantities (in Kg.) Price per Kg. Rs.

Less than 500 10.00

500 and less than 1,600 9.60

1,600 and less than 4,000 9.40

4,000 and less than 8,000 9.20

8,000 and above 9,00

The annual requirement of the material is 8,000 kg. Stock holding costs is 20%

of material cost p.a. Ordering cost per order is Rs. 10.