Determine relevant total average cost per week, Marketing Management

A bank uses a certain form at a uniform rate of 60 pads per week. During each of the 52 weeks per year it is in operation. Every replenishment order it places is delivered at one time. No minimum inventory is carried. The cost of placing and receiving of an order is Rs 15. The purchase price is Rs 2/pad. The inventory of carrying cost in term of an amount paid per pad is estimated to be 25% of the unit price. The lead time is 3 weeks. With the use of the given data the calculated value of the EOQ determine the following:

(i) Reorder point

(ii) Maximum inventory

(iii) Average inventory

(iv) Average no of orders per week

(v) Average order cost per week

(vi) Relevant total average cost per week

(vii) Relevant total average cost per year

Posted Date: 3/2/2013 6:32:04 AM | Location : United States

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