Question

The Ganga pump Company uses about 75,000 valves per year and the usage is fairly constant at 6250
valves per
month.
The valves cost *1.50 per unit when bought in quantities and the carrying cost is estimated to be 20% of
average inventory investment on the annual basis. The cost to place an order and process the delivery is
18.
It takes 45 days to receive delivery from the date of the order and a safety stock of 3250 valves is desired.
You are required to determine.
(i) The EOQ and the frequency of orders;
(ii) The order point; and
(iii) The EOQ if the valves cost * 4.50 each instead of * 1.50 each.
anyone plz. .... slove this question it's very urgent​

Answer 1

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