Question

SR Ltd. is reviewing its purchase policy with regard to the purchase of an important

material. You are given the following information:

(1) Annual Demand: 10,000 Kg.

() Ordering cost: Rs. 500 per onder

(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

Step-by-step explanation:

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