Question

SR Ltd. is reviewing its purchase policy with regard to the purchase of an important material. You are given the following information: (i)Annual Demand: 10,000 Kg. (ii) Ordering cost: Rs. 500 per order (iii) Price per Kg.:Rs. 200 (iv) Stock holding cost: 20%The purchase manager wants to purchase the entire annual requirement in 5 orders of equal quantity. Work out the gain or loss to the organization due to his ordering policy​

Answer 1

Answer:

you have to convert rupees 200 stock holding cost 20%