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What will reorder level and total annual cost of inventory

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Reference no: EM131344731

The annual demand for a product is 3,600 units with an average of 12 - units per day. The lead-time is 10 days. The ordering cost per order is Rs.10 and the annual carrying cost is 25% of the value of the inventory. The price of the product per unit is Rs. 3.00.

(I) What will be the EOQ?

(II) Find the purchase cycle time?

(III) Find the total inventory cost per year?

(IV) If the safety stock of 100-units is considered necessary, what will be the reorder level and the total annual cost of inventory which will be relevant to inventory decision?

Reference no: EM131344731

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