Question

The annual requirement of an item is 12000 unites. Each costing Tk. 6. Every order costs Tk. 200 at release and inventory carrying charges are 20% of the average inventory per annum.
Find out : (1) economic order quantity and corresponding total inventory cost (including item costs), (2) Whether the item should be purchased in lost of 6000 units at a time, if the price per unit is reduced by 5% for this quantity.​

Answer 1

Answer:

answer

The annual requirement of an item is 12000 unites. Each costing Tk. 6. Every order costs Tk. 200 at release and inventory carrying charges are 20% of the average inventory per annum.

Explanation:

economic order quantity and corresponding total inventory cost (including item costs)

Answer 2

EOQ=2000,total inventory cost 74400.,cost 72220 discount be acceptes